KKR Monday said KKR Real Estate Select Trust Inc. (KREST) has acquired HQ @ First, a 603,666 square-foot Silicon Valley office campus, from Mori Trust Co., Ltd., a Japan-based major real estate developer. The purchase price was not disclosed.
Located in North San Jose, HQ @ First is a Class A, modern technology campus with three highly amenitized office buildings, including over 60,000 square-feet in lab space, and a parking garage with 1,600+ spaces.
The property is 100% leased on a long-term basis to an investment-grade rated, publicly traded global technology company and serves as the center of the company’s strategic West Coast footprint.
“HQ @ First is a marquee property with great amenities, including onsite lab facilities, and access to Silicon Valley’s immense pool of talent,” said Justin Pattner, KKR Partner and Head of Real Estate Equity in the Americas.
“We believe well-located, trophy assets that can deliver a dynamic work environment for innovative growth companies will have significant staying power and long-term value. We are excited to add this property to KREST’s portfolio as part of our prime single tenant strategy,” he added.
The property holds a LEED Gold certification and offers direct access to the Silicon Valley’s premier global technology corridor, transportation infrastructure and best-in-class retail.
KKR said the investment is part of KREST’s prime single tenant investment strategy, one of the fund’s three primary investment strategies, which targets high-quality commercial real estate with long-term leases to single investment grade tenants.
”The purchase grows the value of underlying properties in KREST’s portfolio to more than $1 billion and continues KKR’s focus on investing in attractive commercial real estate opportunities on the West Coast,” said the company in a statement.
Inclusive of the Silicon Valley office campus, KKR has acquired more than $4 billion of properties on the West Coast over the last 24 months alone for its real estate funds.
KKR Real Estate Select Trust Inc. is a registered closed-end fund, managed by KKR Registered Advisor LLC, an affiliate of KKR & Co. Inc.
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