Kilroy’s $330M Buying Spree Expands Puget Sound Footprint
- Jun 09, 2012
With $330 million in acquisitions closed or under contract, Kilroy Realty Corp. is cementing its status as a leading Puget Sound office owner. Last week the Los Angeles-based investement firm reported that it spent $145 million in two separate transactions to assemble a 417,000-square-foot campus in Seattle’s South Lake Union district, where Amazon’s development of a 3 million square-foot campus is spurring intense interest from buyers and developers.
In the larger of the two deals, Kilroy bought Fremont Lake Union Center from Metzler North America Corp., for $107 million, the Seattle Times reported. According to information on Metzler’s Web site, the two-building asset encompasses 297,000 square feet and was completed in 1999.
In a separate $39 million transaction, Kilroy acquired Fremont Lake View, a neighboring 111,304-square-foot office building located at 837 North 34th Street. The seller, Stockbridge Capital Group, acquired the property through a foreclosure sale in late 2010, according to an archived press release on Stockbridge’s Web site. A listing on the officespace.com Web site says that Fremont Lake View was completed in 2009.
Collectively the three buildings are 100 percent occupied and include such tenants as Adobe, Inc., Tableau Software and the software company Ubermind, an affiliate of Deloitte. Kilroy said that the aggregate purchase price includes $34 million in debt but did not specify how much of that total is associated with each of the two transactions.
Also in the works is Kilroy’s $186 million acquisition of Skyline Tower, a 417,000-square-foot, 24-story Class A office building in Downtown Bellevue. Currently owned by Boston-based Beacon Capital Partners, the 29-year-old building is 92 percent leased to tenants that include Expedia and Valve Corp. The transaction is scheduled to close during the third quarter and would include assumption of $84 million in debt.
For a more in-depth take on Kilroy’s latest Puget Sound deals, click here.