Kilroy Realty Corp. (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 Street in San Francisco’s Mission Bay neighborhood, 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 major property in the city’s commercial real estate market. The transaction is currently in escrow and expected to close at the end of March. The buyer was not disclosed.
“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 CEO 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