Kilroy Realty Corporation (KRC) has signed a definitive agreement to sell The Exchange on 16th, the company’s 750,000 square-foot office property located at 1800 Owens St. in Mission Bay for a purchase price of $1.08 billion or approximately $1,440 per square foot. Brokers have reported this as the highest per-square-foot sales price for a San Francisco property. The transaction is currently in escrow and expected to close at the end of March.

“This transaction demonstrates that quality assets in quality locations remain highly attractive to buyers and in this case, generated a record price,” said John Kilroy, chairman and chief executive officer of KRC. “The return we achieved from development to disposition clearly highlights the value we have created through our development program. In addition, the strong price underscores the embedded value of our stabilized portfolio, which is well-leased, modern and highly sustainable.”

The company will use the sale proceeds to fund development, for acquisitions and for other general corporate purposes including potentially paying down debt or repurchasing stock.

Kilroy began development of The Exchange in late 2015 and signed a 15-year lease with Dropbox Inc. for the entire office component of the property in 2017. At the time, it was the largest single class-A commercial lease transaction ever completed in San Francisco. The total development cost for the project was approximately $585 million or $780 per square foot.