Kilroy Realty Corporation (NYSE: KRC) announced it has completed the acquisition of a 1.37-acre five parcel land site in Seattle’s central business district for a purchase price of $133 million.
Currently home to a 31,000 square foot building fully leased to Bank of America, the historic 47,000 square foot 10-story Lloyd Building, three surface parking lots and a parking structure, the site is just blocks from Amazon’s main corporate headquarters, the iconic Pike Place Market and Seattle’s retail core anchored by the newly renovated Pacific Place. The specific parcel addresses are 500 and 600 Olive Way, 601 Stewart Street, 1825 7th Avenue and 1818 6th Avenue.
The company plans to seek entitlements to develop a state-of-the-art mixed-use project consisting of approximately 900,000 square feet of office, including the full restoration of the Lloyd Building, and approximately 25,000 square feet of street-level food and beverage retail as well as underground parking. The Lloyd Building is currently approximately 75% leased under numerous short-term leases. In-place zoning on the 1825 7th Avenue parcel allows for approximately 575,000 square feet of residential development, for which the company is evaluating various options. The proposed project will target the highest levels of sustainability, including carbon neutral operations.
The project site offers multiple transportation options, including the South Lake Union Trolley, bus, convenient freeway access and is located across from Westlake Station, Seattle’s most-used light rail station.
Additionally, the location is extremely well positioned between the retail core, Denny Triangle, and South Lake Union, which have grown to become premier destinations for technology, biotechnology, education and creative firms that include Facebook, HBO, Zillow, Google, Redfin and Kaiser Permanente, among many others.
Kilroy Realty Corporatin recently leased its 635,000 square-foot 333 Dexter office development project in South Lake Union to a Fortune 50 technology company and its stabilized portfolio in Seattle is approximately 98% leased. With the recent full building lease execution at 9455 Towne Centre Drive in the UTC submarket of San Diego, the office and life science component of the company’s $2.1 billion of development projects under construction is now approximately 90% leased.
“We are excited to add another prime development opportunity to our portfolio in one of the country’s most vibrant and dynamic markets,” said John Kilroy, KRC’s Chairman and CEO. “We are strong believers in Seattle and hope to continue to grow in this market over time. This opportunity fits our investment thesis well: extremely well-located, unsurpassed transportation options and surrounded by world-class tenants and amenities.”
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