Kilroy Realty Corporation
) recently announced that it has completed the acquisition of '690
E. Middlefield Road' - a prime property in Mountain View,
California. Kilroy Realty intends to develop a 341,000 square-foot
office campus on the acquired property. The company will also
manage the office campus, which will be under a 15-year lease
) - a leading electronic design automation company.
Kilroy Realty expects the investment in the entire project,
including the cost of land, to be approximately $200 million.The
campus will consist of two five-storey Class A office buildings
with state-of-the-art infrastructure and is expected to be
completed in the first quarter of 2015.
With this project, Kilroy Realty has expanded its development
franchise in one of the most attractive submarkets in the Silicon
Valley. The property is strategically located adjacent to Highway
237 with direct access to both Light Rail and Caltrain.
With this acquisition, Kilroy Realty seeks to employ the
knowledge and expertise of its management team to extend its
presence in new West Coast submarkets that have long-term demand
and high barriers to entry.The company is further expanding its
presence in coastal San Diego, where it already enjoys
market-leading positions in the major coastal submarkets from Del
Mar and Sorrento Mesa east to the I-15 Corridor.
With the completion of this project Kilroy Realty's Bay Area
commercial real estate portfolio will surge to approximately 3.0
million square feet, out of which 2.1 million square feet is
located in the vibrant South of Market (SOMA) district in San
Kilroy Realty is a real estate investment trust that engages in
investment, development, and management of real estate
properties. Kilroy Realty focuses on maintaing a
conservatively managed balance sheet, and an expansion program that
include acquisitions or development depending upon specific
Kilroy Realty currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We have a long-term
Neutral recommendation on the stock.
KILROY REALTY (KRC): Free Stock Analysis Report
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