Kilroy Realty Announces Acquisition of Bellevue and San Diego Office Buildings
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LOS ANGELES, Jun 06, 2011 (BUSINESS WIRE) -- Kilroy Realty Corporation (NYSE: KRC), continuing its strategy of acquiring high-quality, well-located properties that provide both strong near-term cash flows and attractive long-term appreciation potential at below replacement cost prices, announced today that it has purchased two office properties located in the cities of Bellevue, Washington and San Diego, California encompassing an aggregate of approximately 663,000 square feet of space. The total purchase price for the two properties is approximately $247.7 million.
In Bellevue, the company acquired Key Center for a net purchase price of approximately $215.0 million. The 488,000 square-foot office property is one of the premier office properties in the region and was completed in 2001. The building is subject to a long-term ground lease and is currently 88% occupied.
In San Diego, the company acquired 10770 Wateridge Circle, a 174,000 square-foot office building in the Sorrento Mesa submarket for a net purchase price of approximately $32.7 million. The building is located in close proximity to several other Kilroy Realty properties and is currently 98% occupied.
Including these two acquisitions, year-to-date Kilroy Realty has acquired four office projects totaling approximately 1.0 million square feet of space that are located in key West Coast submarkets for an aggregate investment of approximately $380.8 million.
In addition, the company is in various stages of negotiations on six additional acquisitions that would total approximately $414 million. Four of these projects are in Northern California and two are in Southern California. These acquisitions are projected to close in the second half of 2011, subject to customary closing conditions.
Some of the information presented in this release is forward looking in nature within the meaning of the Private Securities Litigation Reform Act of 1995. Certain factors that could cause the expectations to differ are set forth as risk factors in the company's Securities and Exchange Commission reports and filings. Included among these factors are changes in general economic conditions, future demand for its debt and equity securities, its ability to refinance its debt on reasonable terms at maturity, its ability to complete current and future development projects on schedule and on budget, and risks detailed from time to time in the company's Securities and Exchange Commission reports, including quarterly reports on Form 10-Q, current reports on Form 8-K and annual reports on Form 10-K. Many of these factors are beyond Kilroy Realty's ability to control or predict. Forward-looking statements are not guarantees of future performance. For forward-looking statements herein, Kilroy Realty claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Kilroy Realty Corporation, a member of the S&P Small Cap 600 Index, is a Southern California-based real estate investment trust active in the office and industrial property sectors. For over 60 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of Los Angeles, Orange County, San Diego, greater Seattle and the San Francisco Bay Area. At March 31, 2011, the company owned 10.5 million rentable square feet of commercial office space and 3.6 million rentable square feet of industrial space. More information is available at http://www.kilroyrealty.com.
SOURCE: Kilroy Realty Corporation
Kilroy Realty Corporation