Kilroy Realty Corporation (NYSE: KRC
) acquired the office building at 401 Terry Ave. N in Seattle, WA from Vulcan, Inc. for $106.13 million, or about $755 per square foot.
Built in 2003 by developer Schnitzer Northwest/Vulcan with NBBJ Architects, the four-story, LEED Gold-certified, 140,605-square-foot, 4-Star life science property sits on almost one acre on half a city block in the Lake Union submarket of King County. It features a three-level subterranean parking garage, large floor plates, numerous amenities, and is immediately adjacent to KRC's two-building Westlake Terry campus in the heart of a booming technology and medical research area.
The asset is fully leased* through 2021 to Institute for System Biology (ISB), a leader in biology and medicine strategy development, on a triple-net basis.
"In today’s environment, in which core pricing has been extremely aggressive, this is another example of how our leading West Coast franchise has allowed us to acquire a fully-leased premier asset at an in-place cap rate of 6% and where in-place rents are approximately 20% below market," said John Kilroy, Jr., chairman, president, and chief executive officer.
Kevin Shannon, Todd Tydlaska, Tom Pehl, Louis Senini, Ken White, and Michael Moll with CBRE represented the seller. The buyer handled the sale in-house.
Please see CoStar COMPS #2978961 for additional information on this transaction.
*The existing lease to ISB totals 140,605 square feet. Based on current Building Owners and Managers Association (BOMA) standards, the building’s rentable square footage on a single-tenant basis exceeds 153,000 square feet.