Kilroy Buys 174,000-SF Office Building for $33M

SAN DIEGO-Kilroy Realty Corp. of Los Angeles has paid $32.7 million for the 174,000-square-foot Scripps Wateridge office building at 10770 Wateridge Circle in the Sorrento Mesa submarket, where the L.A.-based REIT owns about a dozen other properties. Kilroy did not name the seller or brokers in its announcement of the acquisition, but according to industry sources the seller was MetLife and the sale was brokered by the Cushman & Wakefield team of executive director Jeff Cole from the company's Orange County office, along with senior director Steve Rowland and director Michael Roberts, both of the C&W San Diego office.

Scripps Wateridge is a two-story building that is 96% leased, was built in 1989 and is close to several other Kilroy Realty properties. Kilroy's web site lists 12 other properties that it owns in the Sorrento Mesa submarket.

The Scripps Wateridge acquisition is one of two that Kilroy closed recently, including the 488,000-square-foot Key Center office building in Bellevue, WA, a sale that was reported on GlobeSt.com yesterday. Kilroy, which paid $215 million for the Key Center, is in various stages of negotiations on six additional acquisitions that would total approximately $414 million, the company said in its announcement regarding the Scripps Wateridge deal. Four of the projects are in Northern California and two are in Southern California. and all are projected to close in the second half of 2011.