Kilroy Realty Corporation (NYSE: KRC
) has closed on a 13.8-acre, class A office campus at 12770-12790 El Camino Real in San Diego, CA for approximately $126 million.
The Heights at Del Mar includes a three-story office building
and a three-story life science lab building which together total 219,000 square feet of LEED Silver-certified space. Built in 2004 in the coastal Del Mar Heights / Carmel Valley submarket, the two steel structures are fully leased to five tenants including Neuorcrine Bioscience and Knobbe Martens Olson & Bear. Also included in the sale was a 3.96-acre vacant land site fully entitled for 90,000 square feet of new office space
. The park is located immediately adjacent to another KRC future development site, One Paseo.
Kilroy previously announced its plans to acquire the park, funded in part with its public offering of common stock. Read more at Kilroy Realty Raising $250 Million in Secondary Offering
"The Heights encompasses all the characteristics we seek in an acquisition," said John Kilroy, Jr., chairman, president and chief executive officer. "It has a strong initial cash return in the mid 6% range, high-quality tenants, strong submarket fundamentals, adjacency to transportation as well as a wide range of retail amenities and the upside potential of additional development. Together, both The Heights and One Paseo will complete our vision of developing a remarkable, urban, mixed-use, live, work and play environment in one of the best and consistently highest demand coastal submarkets of San Diego."
Kilroy Realty Corporation is a real estate investment trust active in major West Coast markets for more than 65 years. Its current portfolio includes nearly 13.5 million square feet of commercial office space
Please see CoStar COMPS #2842114 for additional information on this transaction.