Kilroy Realty Corp. has signed a definitive agreement to sell its 750,000-square-foot office property, The Exchange on 16th, in San Francisco, for $1.08 billion.
With a purchase price equating $1,440 per square foot, the agreement is reported to be the highest per-square-foot sales price for a property in the San Francisco commercial real estate market.
The transaction is currently in escrow and is expected to close at the end of March.
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Located at 1800 Owens St. in San Francisco's Mission Bay neighborhood, The Exchange was developed by Kilroy Realty in late 2015. The project's total development cost comprised $585 million or $780 per-square-foot.
The firm signed a 15-year lease with Dropbox Inc. in 2017, encompassing the property's entire office component. At the time, the agreement served as the largest, single class A commercial lease transaction to ever be completed in San Francisco.
"This transaction demonstrates that quality assets in quality locations remain highly attractive to buyers and in this case generated a record price," states John Kilroy, chairman and CEO of Kilroy Realty.
Kilroy Realty will utilize the sale proceeds to fund development, acquisitions and other general corporate purposes, such as potentially paying down debt or repurchasing stock or paying a special dividend to the company's common stockholders.
"This is a resounding sign that people are still excited to be a part of San Francisco and its future," says London Breed, mayor of the city and county of San Francisco. "I want to thank Kilroy Realty for their ongoing partnership and collaboration, and recognize them for how they continue to use their development expertise to move forward positive projects that help our economy grow and support the future of our city."
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Ingrid Tunberg
Ingrid Tunberg sits on the editorial team as a coordinator and reporter for Real Estate Forum and GlobeSt.com. She is responsible for writing stories, assisting with industry awards and marketing nomination events. Previously, Ingrid worked as a copywriter across various industries throughout New York City and Chicago.
