Kilroy Realty Grows Seattle Footprint With $490 Million Acquisition
Kilroy Realty Corporation (NYSE: KRC) today announced that it completed the acquisition of West 8th, a 28-story, LEED Platinum, 539,000 square foot office building in Seattle. The premier office project is located in the vibrant and highly amenitized Denny Regrade submarket. Anchored by Amazon, Inc., West 8th will bring immediate strategic benefits, including enhancement to the company’s already strong tenant credit profile, the potential to increase below-market rents on a near term expiration and the expansion of the company’s best-in-class office portfolio that meets the needs of the modern tenant.
West 8th, built in 2009, is located directly across the street from Amazon’s nearly five million square foot newly constructed headquarters campus. The project includes unmatched transit access and proximity to numerous retail amenities and features a walk score of 100 and a transit score of 100. The building is fully leased and anchored by Amazon, which leases approximately 70% of the space through April 2023 at rents significantly below market.
The $490 million acquisition will increase the company’s Greater Seattle portfolio to just under three million square feet, including the recently completed and fully leased 333 Dexter project. Additionally, West 8th is just two blocks from the company’s SIXO development site, which is planned for a two-phased office development totaling approximately one million square feet, alongside a separate parcel which can accommodate up to 600 multifamily rental units. The West 8th project further expands the company’s presence in one of the premier technology office markets in the country.
“We believe the Denny Regrade submarket continues to be extremely well positioned for strong rental growth over the coming years and West 8th, which offers an unrivaled location, will help deliver solid earnings growth and value creation for our shareholders,” said John Kilroy, the company’s chairman and chief executive officer.
About Kilroy Realty Corporation
Kilroy Realty Corporation (NYSE: KRC, the “company”, “Kilroy”) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, the Pacific Northwest and Austin, Texas. The company has earned global recognition for sustainability, building operations, innovation and design. As pioneers and innovators in the creation of a more sustainable real estate industry, the company’s approach to modern business environments helps drive creativity and productivity for some of the world’s leading technology, entertainment, life science and business services companies.