Microsoft Office Trades Hands as Kilroy Sheds 10 West Coast Assets
- May 05, 2015
Microsoft Corp.’s Redmond, Wash., office was among the substantial portfolio Kilroy Realty Corp. recently offloaded to the tune of $309.2 million. The real estate investment trust sold 10 office properties totaling roughly 1 million square feet of space, with an average occupancy rate of 84 percent.
The funds from the sale will be used to further office development projects on the West Coast, as well as for acquisition opportunities and payment on the company’s line of credit.
The Microsoft office is the only one in the Pacific Northwest; the rest are located in San Diego. The Redmond property sits at 15050 NE 36th St., right in the middle of Microsoft’s campus in the city. The tech giant has been the main tenant at the property since its construction in 1998. Kilroy sold it for around $51.2 million, a profit over its acquisition price of $46 million in November 2010 from the Proctor family. Currently known as Microsoft Building 110, the property offers 122,103 square feet of space and is famous for being the only building not under the ownership of Microsoft.
According to John Kilroy, the REIT’s chairman, president & CEO, “the sales prices in these transactions reflect strong investor demand for well-located, high-quality properties”—certainly evidenced by the increase in the Redmond asset’s price in four-and-a-half years.
Image courtesy of keycenterbellevue.com