Kilroy Buys Westlake Terry for $170M

Kilroy Realty Corporation announced today that it had closed on the acquisition of Westlake Terry in the Seattle submarket for approximately $170 million. Vulcan Inc. and Group Health sold the property, with Kilroy assuming an in-place loan of approximately $84 million that bears interest at 6.05%. According to a Puget Sound Business Journal article, when Vulcan and Group Health announced plans to sell the property this summer, Group Health said it intended to use the proceeds for its core business of health care, while Vulcan planned to use its share for more South Lake Union development projects. The listing agent for the sale was Jones Lang LaSalle.

"Westlake Terry encompasses all the compelling characteristics that we seek to include in our portfolio – strong submarket fundamentals, adjacency to transportation and abundant amenities as well as proximity to an anchor corporate user," said John Kilroy, Jr., Kilroy Realty's President and Chief Executive Officer. "In today's environment where core pricing has been extremely aggressive, it is our platform and franchise that have provided us with a competitive advantage to allow us to unlock the value of this acquisition and achieve an in-place cap rate in the mid 6% range on a fully-leased premier asset."

The 320,399 square-foot, two-building Class A office property was 100% leased at the time of sale, with about 126,000 square feet leased to Microsoft and 149,000 square feet occupied by Group Health Cooperative. The LEED Gold certified property, designed by Callison, was built in 2007 and occupies a full city block at 320 Westlake Avenue North and 321 Terry Avenue North.

For more news and information visit Blumberg Capital Partners.

Kilroy Pays $186M for Skyline Tower in Seattle

Kilroy Realty Corporation announced this week that it had acquired the 417,000 square-foot, 24-story, Class A office tower known as Skyline Tower located in Bellevue, Washington for $186 million. Kilroy purchased the property from Beacon Capital Partners of Boston in the second-largest in King County so far this year, according to a Seattle Times article. Beacon Capital Partners reportedly paid $129.8 million, or $318 a square foot, for the property in early 2006. In an earlier release announcing the pending sale, Los Angeles-based Kilroy said it was taking on an in-place loan of $84 million as part of the deal.

Skyline Tower is a LEED Silver certified property featuring spectacular views of the Cascade and Olympic Mountains and Mount Rainier, and sits in close proximity to Bellevue's affluent residential and retail neighborhoods. The property, designed by TRA Architects, is currently 92% leased to a diverse tenant base that includes technology companies Expedia and Valve Corporation.

For more news and information visit Blumberg Capital Partners.