Kilroy Spends $100M In Sunnyvale
LA-based Kilroy just picked up the 267k SF Chesapeake Commons office building in Sunnyvale for $100.5M, according to The Registry. Located at 1310-1325 Chesapeake Terrace Dr, the property will be kept as is for the next few years, EVP for NorCal Mike Sanford tells the news outlet, though Kilroy will consider redeveloping it down the line. "This would mean changing the property from a two-story building into something that is higher," he adds. The property now has an FAR of 30% to 35%. The cap rate was in the mid-6% range.
The property is fully leased to Accuray and Cepheid. Both have deals that will keep them in the property through at least 2019. The seller was DivcoWest, which bought it February 2012 for $73M from LaSalle Partners. At Bisnow's State of the Market event in January, CEO John Kilroy (being interviewed by Allen Matkins' Tony Natsis), said it's not the $20M deals that excite him; it's the $100M or several hundred million dollar ones he's after. [REG]