Kilroy Pays $162M for Seven Building Campus

(Mark Your Calendars: RealShare REAL ESTATE 2012, March 22^nd in Los Angeles).

MENLO PARK, CA-Kilroy Realty Corp. has purchased Menlo Corporate Center here for approximately $162.2 million. The seven-building, 374,000-square-foot campus, located in the heart of Silicon Valley, is 79% occupied by 10 tenants, including the Lucile Packard Children's Hospital at Stanford, E*Trade and Allstate Insurance Co. 

Including this acquisition, Kilroy Realty has acquired eight office projects totaling approximately 2.6 million square feet for an aggregate investment of approximately $877 million in the San Francisco Bay Area since 2010.

Menlo Corporate Center, located at 4100-4700 Bohannon Dr., “provides us with a great opportunity to capture additional value as we release the remainder of the vacant space at rents that are well above the current in-place rates,” explains Mike Sanford, senior vice president of Northern California. “We see strong fundamentals in Silicon Valley and Peninsula office markets and will continue to pursue opportunities that make strategic and economic sense for the company.”

The acquisition of Menlo Corporate Center represents an important first step in the company’s longer term goals of having a “a significant presence on the San Francisco Peninsula and in Silicon Valley to serve the important and vibrant base of technology, media, internet and other innovative companies that have grown and will continue to grow in this important region,” explains Eli Khouri, executive vice president and chief investment officer.