SAN DIEGO — Kilroy Realty Corp. (NYSE: KRC) has completed the sale of 13 San Diego office properties in multiple transactions for total gross proceeds of approximately $327 million.
“The sales price reflects strong investor demand for well-located, high quality properties,” says John Kilroy Jr., chairman, president and CEO of Los Angeles-based Kilroy Realty. “The successful transaction demonstrates our team’s ability to execute on our core investment philosophy and create meaningful value in each part of the real estate investment cycle.”
The portfolio includes 1.1 million square feet in the I-15 Corridor/Sorrento Mesa submarket, about 14 miles north of downtown San Diego, and was approximately 91 percent leased at the time of sale. As part of the company’s capital recycling strategy, it will reinvest the proceeds into its expanding West Coast office development program and other potential acquisition opportunities.
The sale of 4910 Directors Place occurred in December 2013 and the sale of 12 other office buildings occurred in early January this year. Those 12 properties are located at 10020 Pacific Mesa Blvd.; 6055 Lusk Ave.; 5010 and 5005 Wateridge Vista Drive; 15435 and 15445 Innovation Drive; and 15051, 15073, 15231, 15253, 15333 and 15378 Avenue of Science.
As of Sept. 30, 2013, Kilroy’s portfolio totaled 12.5 million square feet of office properties, all located in the coastal regions of greater Seattle, the San Francisco Bay area, Los Angeles, Orange County and San Diego. The REIT owns approximately 4.4 million square feet in San Diego County.
Additionally, Kilroy is developing approximately 1.9 million square feet of new office space with a total estimated investment of approximately $1.1 billion. The REIT’s stock price closed at $51.20 per share on Friday, up from $48.65 per share a year ago.