KKR has revealed it acquired The Exchange office complex in San Francisco鈥檚 Mission Bay from Kilroy Realty for $1bn (鈧�845.6m).
The global investment firm, investing through its core plus real estate strategy, said Wednesday that it will work with Longfellow Real Estate Partners to operate the 750,000sqft property.
Earlier in March, Kilroy Realty said it had signed an agreement to sell The Exchange, without disclosing the buyer鈥檚 details.
Built in 2018, The Exchange is a centre for life sciences and technology on the West Coast comprised of four interconnected buildings. The property is currently leased to cloud storage software firm Dropbox.
Justin Pattner, KKR partner and head of real estate equity in the Americas, said: 鈥淲e 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 centre.
鈥淲e 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鈥檚 robust academic and business community, accompanied by its impressive talent base.鈥�
As a result of the deal, KKR real estate funds have acquired in excess of $3.5bn across asset classes on the West Coast over the last 24 months.
KKR expands US industrial footprint with $68m Phoenix deal
KKR has acquired a 540,000sqft industrial portfolio in Phoenix, Arizona for $68m on behalf of its Americas opportunistic equity real estate strategy.
The acquisition of the five-building industrial portfolio is KKR鈥檚 second industrial real estate acquisition in the Phoenix market this year and expands the firm鈥檚 total Phoenix industrial footprint to 2.5m sqft.
Across its funds, KKR owns over 33m sqft of industrial property in locations across major metropolitan areas in the US.
Ben Brudney, a director in the real estate group at KKR, said: 鈥淭he favourable demographic trends in Phoenix that we saw in 2019 and 2020 have continued to accelerate in 2021.
鈥淲e are excited to further grow our footprint in the market with the addition of this portfolio. Phoenix is an important market for us as we continue to expand in 2021 and beyond.鈥�
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