KKR Buys San Francisco Life Science Office for $1B
Kilroy Realty sold the 750,000-square foot Mission Bay property, which is fully leased.
KKR has closed on The Exchange on 16th, a 750,000-square-foot office complex in San Francisco’s Mission Bay submarket for slightly more than $1 billion. The seller is Kilroy Realty Corp.
Longfellow Real Estate Partners, a life science focused real estate developer and manager, will work with KKR to operate the property. KKR is making the investment through its core plus real estate strategy.
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.
Built in 2018, The Exchange is a center for life sciences and technology on the West Coast. Comprising four interconnected buildings, the property has both LEED Platinum and WELL Core & Shell Gold certifications, as well as lab-ready infrastructure for life science tenancy. The property is currently 100% leased to a publicly traded technology company.
Including The Exchange, KKR real estate funds have acquired more than $3.5 billion across asset classes on the West Coast over the last 24 months. Since launching a dedicated real estate platform in 2011, KKR has grown its real estate assets under management to approximately $28 billion across the US, Europe and Asia Pacific as of December 31, 2020 (pro forma to include Global Atlantic’s assets following KKR’s acquisition of Global Atlantic on February 1, 2021).
“We remain focused on opportunities to add quality real estate assets to our portfolios, and The Exchange is a prime example,” said Justin Pattner, KKR partner and head of Real Estate Equity in the Americas in prepared remarks.