Kilroy Realty Corporation has purchased Menlo Corporate Center in Menlo Park,for $162.2 million. The seven-building, 374,000-sq.-ft. campus, located in the heart of Silicon Valley, is 79 percent occupied by 10 tenants, including the Lucile Packard Children's Hospital at Stanford, E*Trade and Allstate Insurance Company.
“Menlo Corporate Center, located in one of Silicon Valley's most desirable and tightly supply-constrained submarkets, provides us with a great opportunity to capture additional value as we release the remainder of the vacant space at rents that are well above the current in-place rates”, said Mike Sanford, senior vice president - Northern California, in a statement. “We see strong fundamentals in Silicon Valley and Peninsula office markets and will continue to pursue opportunities that make strategic and economic sense for the company.”
Including this acquisition, Kilroy Realty has acquired eight office projects totaling approximately 2.6 million sq. ft. for an aggregateof approximately $877 million in the San Francisco Bay Area since 2010.
“The acquisition of Menlo Corporate Center represents an important first step in our longer term commitment to have a significant presence on the San Francisco Peninsula and in Silicon Valley to serve the important and vibrant base of technology, media, internet and other innovative companies that have grown and will continue to grow in this important region,” said Eli Khouri, executive vice president and chief investment officer, in a statement.
Menlo Corporate Center is located at 4100-4700 Bohannon Drive with freeway frontage on Highway 101. It has proximity to Caltrain, abundant parking and significant recently completed renovations that make the campus highly sought after by a wide range of corporate tenants.