Kilroy Realty Corporation (NYSE: KRC) disclosed that it has entered into a three-separate off-market transaction. Kilroy Realty has decided to spend $670 million to purchase Indeed Tower in Austin, Texas, a land site adjacent to its 2100 Kettner development project in San Diego and the ground lease under its Key Center office tower in Bellevue, Washington.
It has been disclosed that all three deals are anticipated to execute by the end of third quarter of and are dependent on certain execution conditions. The $580 million buying of Indeed Tower will provide immediate financial and strategic advantages to the firm. It includes the chance to boost earnings and create value through additional lease-up.
Furthermore, Indeed Tower will be executed in May 2021. It is a LEED Platinum targeted, 36-story office project totaling nearly 730,000 square feet situated in the heart of Austin’s central business district (CBD). Moreover, the purchase will create the presence of the firm in the bright, fast-growing Austin CBD where the firm will be the fifth largest owner of Class A office product.
Additionally, the firm also bought a land site directly nearby to its 2100 Kettner project in the Little Italy neighborhood of San Diego for $42 million. The firm is also planning to develop up to 275,000 square feet of office space on the full city block site that is within walking distance to San Diego Bay and will feature panoramic water views. The third acquisition of the firm is the $47 million buying of the ground lease underlying its 488,000 square foot Key Center project in Bellevue.