LOS ANGELES-As part of the company’s capital-recycling strategy, Kilroy Realty Corp. has sold its entire industrial portfolio and two small office projects to two institutional buyers for $355 million. The real estate practice team of Allen Matkins served as representation for Kilroy on the sale of the 44 properties, which were sold in two tranches and total approximately 3.7 million square feet in aggregate.
A representative for Allen Matkins tells GlobeSt.com that Tony Natsis, partner and chair of the firm’s real estate practice group; Peter Roth, partner; Crystal Lofing, associate; and Elizabeth Wilgenburg, associate, represented Kilroy in the transactions. The two buyers were TIAA-CREF, which was represented by David Phelps of Paul Hastings’s Los Angeles office, and LBA REIT, which was represented by Andrew Shiner and Tim Farahnik of Seyfarth Shaw‘s Los Angeles office.
Industry sources unrelated to the transactions report that in November, Kilroy sold an industrial property at 1075 Lambert Rd. in Brea, CA, to TIAA-CREF for an unspecified amount. The two-story building, completed in 1999, held 98,811 square feet and was billed as flex property.
The purchase price on the dispositions reflects strong investor demand for well-located, well-leased coastal assets, according to the company. Kilroy will reinvest the proceeds into its expanding West Coast office-development program and anticipates recording an approximate $185-million gain on the sale in the fourth quarter.
According to John Kilroy, Jr., Kilroy’s president and CEO, “These transactions reflect a milestone for the company as it moves forward with its value-creation strategy of acquiring, repositioning, redeveloping high-quality office space in the best West Coast markets.”
As GlobeSt.com previously reported, in October, in an effort to create synergies among its office assets in the Los Angeles area, Kilroy Realty Corp. purchased Columbia Square, a historic media campus in Hollywood, for $65 million, and Tribeca West, a West Los Angeles entertainment-oriented property for $73 million. Pete Roth from Allen Matkins‘ Century City, CA, office, was the lead attorney for KRC in acquiring the properties. The sellers were iStar Financial for Columbia Square and Ocean West Capital Partners for Tribeca West.