Kilroy Set to Buy 2211 Michelson for $103M

IRVINE, CA-Kilroy Realty Corp. is under contract to acquire the 12-story, 271,600-square-foot 2211 Michelson Dr. office building from a joint venture of Hines Interests and Crescent Real Estate Equities for $103 million, according to a statement issued by the Los Angeles-based REIT. Kilroy says that the building, which was completed in 2007 and was one of the first Silver LEED buildings on the West Coast, is 92% leased.

The 2211 Michelson building, in the John Wayne Airport area submarket, was developed on a 1.2-acre site that includes an adjacent six-story parking structure providing parking at the ratio of six stalls per 1,000 square feet of building space, according to previous GlobeSt.com reports on the project. The building was the fourth to be developed in the original Koll Center Irvine South Campus, which is now known as Von Karman Towers.

Hines describes the building as part of a 75-acre campus with pedestrian access to amenities including a 24 Hour Fitness Ultra Sport, a Mariott Hotel, on-site restaurants and retail, and within walking distance of John Wayne Airport.

Hines recently signed five new tenants to deals for 44,000 square feet at 2211 Michelson, including three relocations and two newly formed companies. The tenants included insurance advisory firm Burnham Benefits, law firm Gordon & Rees LLP, the Scotts Co. lawn and garden company, commercial real estate services firm 360 Commercial Partners and law firm Connor, Fletcher & Williams. The leases ranged from three and a half to 10 years at rental rates that were undisclosed. Asking rates for the building are $2.50 to $2.75 per square foot per month.

According to Hines, 2211 Michelson was the first office building on the West Coast (two others, also developed by Hines, are now complete) to achieve Silver LEED certification.