LOS ANGELES, CA – Kilroy Realty Corporation (NYSE: KRC) announced today that it has purchased Menlo Corporate Center in Menlo Park, California for approximately $162.2 million. The seven building, 374,000 square-foot campus, located in the heart of Silicon Valley, is 79% occupied by 10 tenants, including the Lucile Packard Children’s Hospital at Stanford, E*Trade and Allstate Insurance Company.
Menlo Corporate Center, located in one of Silicon Valley’s most desirable and tightly supply-constrained submarkets, provides us with a great opportunity to capture additional value as we release the remainder of the vacant space at rents that are well above the current in-place rates, said Mike Sanford, Senior Vice President – Northern California. We see strong fundamentals in Silicon Valley and Peninsula office markets and will continue to pursue opportunities that make strategic and economic sense for the company.
Including this acquisition, Kilroy Realty has acquired eight office projects totaling approximately 2.6 million square feet for an aggregate investment of approximately $877 million in the San Francisco Bay Area since 2010.
The acquisition of Menlo Corporate Center represents an important first step in our longer term commitment to have a significant presence on the San Francisco Peninsula and in Silicon Valley to serve the important and vibrant base of technology, media, internet and other innovative companies that have grown and will continue to grow in this important region, said Eli Khouri, Executive Vice President and Chief Investment Officer.
Menlo Corporate Center is located at 4100-4700 Bohannon Drive with freeway frontage on Highway 101, proximity to Caltrain, abundant parking, and significant recently completed renovations that make the campus highly sought after by a wide range of corporate tenants.
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 potential acquisitions and dispositions on the terms or by the dates currently contemplated, 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 real estate investment trust active in premier office and industrial submarkets along the West Coast. For over 60 years, the company has owned, developed, acquired and managed real estate assets, consisting primarily of Class A real estate properties in the coastal regions of Los Angeles, Orange County, San Diego, greater Seattle and the San Francisco Bay Area. At December 31, 2011, the company owned 11.4 million rentable square feet of commercial office space and 3.4 million rentable square feet of industrial space. More information is available at www.kilroyrealty.com.
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