KKR said Wednesday it has acquired The Exchange on 16th, a 750,000-square-foot Class A office complex in San Francisco’s Mission Bay neighborhood, from Kilroy Realty Corporation for approximately $1 billion.
Longfellow Real Estate Partners, a life science focused, vertically integrated real estate developer and manager, will work with KKR to operate the property.
Built in 2018, The Exchange is a center for life sciences and technology on the West Coast comprised of four interconnected buildings.
The property’s state-of-the-art design holds both LEED Platinum and WELL Core & Shell Gold certifications, as well as lab-ready infrastructure for life science tenancy.
The office complex is currently 100% leased to a leading publicly traded technology company.
“We are thrilled to be building on our deep commitment to the West Coast real estate market with the purchase of this premier property in Mission Bay, a highly attractive location serving as a world-class innovation center,” said Justin Pattner, KKR Partner and Head of Real Estate Equity in the Americas.
“We remain focused on opportunities to add quality real estate assets to our portfolios, and The Exchange is a prime example. We believe our long-term investment is supported by the region’s robust academic and business community, accompanied by its impressive talent base,” he added.
“Working alongside KKR, The Exchange provides us an exciting opportunity to have a transformative presence in Mission Bay, bringing our world class capabilities and scale to bear,” said Jamison Peschel, Co-Founder and Senior Partner of Longfellow Real Estate Partners. “We are long-term believers in the Bay Area market and we’re looking forward to working with the existing tenant to capitalize on the strength of the life science and technology industries in the Mission Bay cluster.”