Kilroy Realty Corporation (NYSE: KRC) today said it has completed the purchase of a 13.8 acre Class A office campus in the premier, coastal Del Mar sub-market of San Diego for approximately $126 million. The campus, known as The Heights, includes a three-story office building, a three-story life science building, which together total approximately 219,000 square feet and a subterranean parking structure. Additionally, the campus includes a land site that is fully entitled for a state-of-the-art 90,000-square-foot office building to be LEED certified.
The two existing buildings, both LEED Silver certified and built in 2004 with steel frame construction, are 100% leased to five tenants, including Neurocrine Bioscience (NASDAQ: NBIX) and Knobbe Martens Olson & Bear, one of the nation’s largest intellectual property law firms. The campus features amenities that attract knowledge-based tenants, including ample parking, a sports court and on-site fitness center, abundant outdoor common and gathering areas as well as an amphitheater.
In its own right, The Heights is a highly attractive, well-located and scalable campus and is also immediately adjacent to KRC’s future development project One Paseo. The company expects to garner significant synergies from owning and operating both projects.
“The Heights encompasses all the characteristics we seek in an acquisition,” said John Kilroy, Jr., the company’s chairman, president and chief executive officer. “It has a strong initial cash return in the mid 6% range, high-quality tenants, strong submarket fundamentals, adjacency to transportation as well as a wide range of retail amenities and the upside potential of additional development. Together, both The Heights and One Paseo will complete our vision of developing a remarkable, urban, mixed-use, live, work and play environment in one of the best and consistently highest demand coastal submarkets of San Diego.”
About Kilroy Realty Corporation.
Kilroy Realty Corporation, a member of the S&P MidCap 400 Index, is a real estate investment trust active in major West Coast markets. For over 65 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of Los Angeles, Orange County, San Diego, the San Francisco Bay Area and greater Seattle. At June 30, 2013, KRC owned approximately 13.5 million rentable square feet of commercial office space. More information is available at
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