Kilroy Pays $111M for San Francisco Life Sciences Asset
- Feb 05, 2018
Kilroy Realty has acquired a 146,000-square-foot laboratory and office property in South San Francisco for $111 million. The seller, NewTower Trust Co., developed the buildings between 1999 and 2000.
Located at 345, 347 and 349 Oyster Point Blvd., the property’s three two-story buildings are in a burgeoning area for the life sciences industry. Kilroy’s new assets are currently 80 percent occupied and home to a number of life science tenants including Monogram Biosciences and 23andMe.
High occupancy rates
According to Kilroy’s press release, South San Francisco boasts a low, two-percent vacancy rate in the life sciences sector. HCP’s Britannia Oyster Point and The Cove at Oyster Point—two major life sciences campuses totaling 2.4 million square feet—sit in the immediate area, with another 800,000 square feet under construction.
“This acquisition represents an attractive, off-market opportunity to establish a presence in the premier West Coast life science market while generating strong returns,” said John Kilroy, chairman & CEO of Kilroy, in a prepared statement.
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