Kilroy’s $670M Agreement Includes Indeed Tower Acquisition
Kilroy Realty Corporation has reached agreement in three separate off-market transactions totaling approximately $670 million to acquire Indeed Tower in Austin, a land site adjacent to its 2100 Kettner development project in San Diego and the ground lease under its Key Center office tower in Bellevue, WA. All three transactions are expected to close by the end of the third quarter and are subject to certain closing conditions.
The $580 million acquisition of Indeed Tower will afford the opportunity to grow earnings and create value through additional lease-up along with the creation of a platform for future growth in the region.
Indeed Tower, completed in May 2021, is a LEED Platinum-targeted 36-story office project totaling approximately 730,000 square feet located on a full city block of the CBD and includes a 35,000-square-foot historic post office building that can accommodate a variety of uses.
“I can’t overstate how well Indeed Tower fits with our strategic and property objectives. It is arguably the best building in Austin, is in one of the best locations, provides us with scale that will support future growth, is anchored by an investment-grade technology tenant and provides a value-add opportunity through lease-up in an office market that is strengthening,” said John Kilroy, the company’s chairman and chief executive officer.
Eastdil Secured and Allen Matkins advised the company on the transaction.
- ◦Sale/Acquisition