Kilroy Realty Announces Acquisition of Bellevue and San Diego Office Buildings

Kilroy Realty Corporation KRC, continuing its strategy of acquiring high-quality, well-located properties that provide both strong near-term cash flows and attractive long-term appreciation potential at below replacement cost prices, announced today that it has purchased two office properties located in the cities of Bellevue, Washington and San Diego, California encompassing an aggregate of approximately 663,000 square feet of space. The total purchase price for the two properties is approximately $247.7 million. In Bellevue, the company acquired Key Center for a net purchase price of approximately $215.0 million. The 488,000 square-foot office property is one of the premier office properties in the region and was completed in 2001. The building is subject to a long-term ground lease and is currently 88% occupied. In San Diego, the company acquired 10770 Wateridge Circle, a 174,000 square-foot office building in the Sorrento Mesa submarket for a net purchase price of approximately $32.7 million. The building is located in close proximity to several other Kilroy Realty properties and is currently 98% occupied.