It's Official: Kilroy Selling $310M Portfolio
As Bisnow first reported last month, John Hancock Real Estate is buying a boatload of Kilroy Realty properties in San Diego. Kilroy revealed further details of the transaction in its latest quarterly report to the SEC. The sale will total nearly $310M once complete. The first of the sales closed this month for $95M and included 6200 and 6220 Greenwich Dr in Governor Park and 10770 Wateridge Circle, a 180k SF office building that's home to L3 Communications in Sorrento Mesa. Other Properties under contract include Sequence Technology Center (6260, 6290, 6310, 6340 and 6350 Sequence Dr) and 4921 Directors Place, a 57k SF Sorrento Mesa office building leased to Samsung Electronics.
The deal could represent the single largest office sales transaction in San Diego this year, once it fully closes. Kilroy officials say the sale is an effort to recycle existing properties to help fund its development pipeline, including its embattled One Paseo project. At our San Diego Investment Summit last week, Kilroy's John Kilroy Jr. (on left with our own Sean Spear) talked somewhat about this strategy in light of a healthy San Diego office market: “The way we operate our company is we're like farmers. When the crops come in, [we] stop and pick it,” he says. “There's always an end to the cycle. And when that happens, then I want to be there as a buyer.”