(Save the Date: RealShare Orange County comes to the Hyatt Regency, Irvine, August 16.)
LOS ANGELES-Kilroy Realty announced today that it has closed on a $97 million fifteen year, non-recourse mortgage loan, only adding to recent acquisition activity on the West Coast. For instance, Globest.com reported that the REIT purchased two office properties in the Lake Union submarket of Seattle and was readying to close on a third in Bellevue by the third quarter. The cost of this venture? A tidy $145 million.
Additionally, the REIT dropped $162 million for the seven-building Menlo Corporate Center – a portfolio that spans 374,000-square-foot campus and is set in “the heart” of Silicon Valley, as Globest.com recently reported.
According to a company statement, Kilroy Realty conducted will use proceeds from this recent loan to pay down borrowings on its credit facility. Michelle Ngo, vice president and treasurer of the company expanded upon this and explains to Globest.com that this mortgage was really to “refinance a mortgage that was scheduled to mature in August of this year. We had the option to prepay that mortgage early, so we did so in May. This latest mortgage was more of a refinancing than an asset-level financing move.”
However, this move was good for Kilroy Realty: “With this financing,” Ngo added,” we effectively have no debt maturities until the third quarter of 2014.”
While the REIT will not discuss future plans it has not yet made public, Ngo explained that Kilroy Realty look at opportunities “opportunistically” and choose specific markets: “knowledge-driven tech and media markets” – certainly right in line with other recent acquisitions.
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