KILROY REALTY CORP. BUYS CALIF. OFFICE COMPLEX FOR $162.2M
MENLO PARK, CALIF. — Kilroy Realty Corp. (NYSE: KRC) has acquired the seven-building Menlo Corporate Center, a 374,000-square-foot office campus for $162.2 million.
The property, located at 4100-4700 Bohannon Dr. in Menlo Park, is 79 percent leased to 10 tenants that include Lucile Packard Children’s Hospital at Stanford, E*Trade and Allstate Insurance Co.
“Menlo Corporate Center, located in one of Silicon Valley’s most desirable and tightly supply-constrained submarkets, provides us with a great opportunity to capture additional value as we re-lease the remainder of the vacant space at rents that are well above the current in-place rates,” said Mike Sanford, senior vice president of Kilroy Realty Corp.’s northern California office, in a prepared statement.
“We see strong fundamentals in the Silicon Valley and Peninsula office markets and will continue to pursue opportunities that make strategic and economic sense for the company,” added Sanford.
Kilroy Realty Corp., which owns, develops, acquires and manages real estate assets, focuses primarily on Los Angeles, Orange County, San Diego, greater Seattle and the San Francisco Bay area.
Since 2010, Kilroy Realty Corp. has purchased eight office properties that total 2.6 million square feet in the San Francisco Bay area, for an aggregate investment of approximately $877 million.
“The acquisition of Menlo Corporate Center represents an important first step in our long-term commitment to have a significant presence on the San Francisco Peninsula and in Silicon Valley, to serve the important and vibrant base of technology, media, Internet and other innovative companies that have grown and will continue to grow in this important region,” said Eli Khouri, executive vice president and CIO of Kilroy Realty Corp.
HFF represented the seller in the transaction.
Kilroy Realty Corp.’s share price on March 1 closed at $44.67, up from $36.33 a year ago.
— Savannah Duncan