By Alex Girda, Associate Editor
In its latest big-ticket Bay Area buy, Kilroy Realty Corp. has paid $162.2 million for a 374,000-square-foot office campus in Menlo Park. Kilroy Realty acquired its newest asset, Menlo Corporate Center, from Walton Street Capital L.L.C.
Located on Bohannon Drive, the complex consists of seven buildings that are currently 79 percent occupied. Its 10 tenants include Lucile Packard Children’s Hospital at Stanford, E*Trade and Allstate Insurance Co.
“The acquisition of Menlo Corporate Center represents an important first step in our longer-term commitment to have a significant presence on the San Francisco Peninsula and in Silicon Valley to serve the important and vibrant base of technology, media, Internet and other innovative companies that have grown and will continue to grow in this important region,” explained Eli Khouri, Kilroy Realty’s executive vice president and chief investment officer.
Since 2010, the firm has invested $877 million to build a Bay Area office portfolio that currently encompasses eight properties and 2.6 million square feet. During the fourth quarter of 2012, Kilroy Realty bought two office properties in San Francisco’s South of Market district, 301 Brannan Street and 370 Third Street, for a combined cost of $121.5 million. Last September, Kilroy Realty paid $103.3 million for a third SoMa office building, the 311,545-square-foot 201 Third Street. All told, Kilroy Realty owned 11.4 million square feet of office space and 3.4 million square feet of industrial properties in California and Washington as of the end of the fourth quarter.