Kilroy Realty Corp. (KRC) bought Skyline Tower, a 417,000-sq.-ft. class-A office building in Bellevue, Wash. for approximately $186 million. The purchase price includes the assumption of an $84 million in-place mortgage that comes with an interest rate of 6.37 percent and matures on April 1, 2013.
The 24-story, LEED Silver-certified property is currently 92 percent leased. Expedia and Valve Corp. make up some of the tenants at the building.
According to KRC executives, the company purchased Skyline Tower at a price below replacement cost. KRC plans to undertake a capital improvements and modernization program at the building to support rental growth.
In a separate transaction, KRC purchased a 0.82-acre development site at 329 Brannan Street in San Francisco for $18.5 million. The site, located in the cityâ€™s SOMA district, is zoned for commercial development.
KRC plans to build a LEED Gold-certified, six-level office building on the property. The building will incorporate open floor plates, concrete floors, large windows and multiple common areas to appeal to growing technology and media companies in the area. The company estimates the project will cost approximately $80 million, including the cost of land, and be completed sometime in 2015.