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Kilroy Realty Corporation Continues Seattle Area Expansion with Acquisitions …

Tue, 05 Jun 2012 00:17:47 +0000

LOS ANGELES, Jun 04, 2012 (BUSINESS WIRE) –
Kilroy Realty Corporation

/quotes/zigman/171049/quotes/nls/krc KRC
-0.09%

today announced that it has
completed the purchase of two office properties in the Lake Union
submarket of Seattle and expects to complete the acquisition of a
Bellevue property in the third quarter, subject to customary closing
conditions. These acquisitions will nearly double the West Coast real
estate investment trust’s office portfolio in high growth submarkets of
the Puget Sound Region.

In three separate transactions, KRC has acquired or expects to acquire
properties in Lake Union and Bellevue aggregating approximately 837,000
square feet of space for a total purchase price of approximately $330
million.

Since its reentry into the Seattle market in 2010, including these
transactions, KRC will acquire approximately 1.7 million square feet of
premier office space in the Puget Sound Region and has established a
locally-based operating platform with seasoned management to expand and
manage its portfolio there. The company’s Seattle portfolio, located in
the Eastside markets of Bellevue, Kirkland and Redmond as well as the
Lake Union submarket, now represent approximately 10% of KRC’s portfolio
on a square-foot basis and account for approximately 13% of its annual
net operating income on a pro forma basis.

“Seattle’s Bellevue, Eastside and Lake Union submarkets present a
compelling set of characteristics that KRC looks for in its real estate
portfolio,” said John Kilroy, Jr., the company’s president and chief
executive officer. “These include an economically vibrant core, a unique
coastal location, a quality of life valued by fast-growing,
knowledge-based businesses and their employees, and a regional approach
to development that effectively limits supply.”

“With a knowledgeable and experienced management team now in place,”
said Kilroy, “Seattle will continue to play an important role in the
expansion of our West Coast real estate franchise and the growth of our
brand as the region’s most innovative landlord.”

Lake Union Acquisitions

In two separate transactions, KRC acquired a three-building, 420,000
square-foot office campus located at 701, 801, 837 N. 34th Street in
Seattle’s Fremont neighborhood of Lake Union for approximately $145
million. Lake Union, home to Amazon.com’s two million square-foot
headquarters, is a magnet for Seattle’s high-growth, high-tech industry
and KRC’s newly acquired campus is well positioned in the submarket on
the Lake Union waterfront and immediately adjacent to the Burke Gilman
Trail, Seattle’s most popular running and biking trail.

Known as Fremont Lake Union Center and Fremont Lake View, the
three-building campus is currently 100% leased to a tenant list that
includes Adobe, Inc., Tableau Software and Ubermind, a Deloitte software
company. KRC purchased the properties at a significant discount to
replacement cost and expects to capture significant value as this
submarket continues to lead the region in growth and tenant demand with
in-place rents well below market. The campus is subject to a long term
ground lease and the company will be assuming approximately $34 million
of debt as part of the acquisition.

Bellevue Acquisition

KRC is also in escrow to acquire Skyline Tower, a 417,000 square-foot,
24-story, Class A office building in Downtown Bellevue for approximately
$186 million. The LEED Silver certified property is located at 10900
Northeast Fourth Street, two blocks from the company’s Key Center office
building and one block north of the Bellevue Transit Center. The
building, which has spectacular views of the Cascade Mountains and Mount
Rainier, is in close proximity to The Bravern and Bellevue Square, two
of the area’s most prestigious residential and retail centers.

Skyline Tower is currently 92% leased to a diverse tenant base that
includes technology companies Expedia and Valve Corporation. The company
will assume an in-place loan of approximately $84 million as part of the
acquisition.

“With the purchase of Skyline Tower, KRC will own two of the top Class A
multi-tenant office buildings in Downtown Bellevue,” said Mike Shields,
senior vice president of KRC’s Pacific Northwest region. “We expect
Downtown Bellevue to continue to be a location of choice for both
technology and service companies that value high quality amenities,
proximity to mass transit, and commuter convenience.”

This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on our current expectations,
beliefs and assumptions, and are not guarantees of future performance,
results or events. Forward-looking statements are inherently subject to
uncertainties, risks, changes in circumstances, trends and factors that
are difficult to predict, many of which are outside of our control.
Accordingly, actual performance, results and events may vary materially
from those indicated in forward-looking statements, and you should not
rely on forward-looking statements as predictions of future performance,
results or events. Numerous factors could cause actual future
performance, results and events to differ materially from those
indicated in forward-looking statements, including, among others: risks
associated with investment in real estate assets, which are illiquid,
and with trends in the real estate industry; competitive market
conditions; the ability to complete potential acquisitions and
dispositions on announced terms; the ability to successfully operate
acquired properties; the availability of cash for debt service and
exposure of risk of default under debt obligations; and the ability to
successfully complete development and redevelopment projects on schedule
and within budgeted amounts. These factors are not exhaustive. For a
discussion of additional risk factors that could adversely affect our
business and financial performance, see the factors included under the
caption “Risk Factors” in our annual report on Form 10-K for the year
ended December 31, 2011, quarterly report on Form 10-Q for the quarter
ended March 31, 2012, and our other filings with the Securities and
Exchange Commission. All forward-looking statements are based on
currently available information and speak only as of the date on which
they are made. We assumes no obligation to update any forward-looking
statement made in this press release that becomes untrue because of
subsequent events, new information or otherwise, except to the extent it
is required to do so in connection with ongoing requirements under
Federal securities laws.

Kilroy Realty Corporation, a member of the SP Small Cap 600 Index, is a
real estate investment trust active in premier office and industrial
submarkets along the West Coast. For over 60 years, the company has
owned, developed, acquired and managed real estate assets, consisting
primarily of Class A real estate properties in the coastal regions of
Los Angeles, Orange County, San Diego, greater Seattle and the San
Francisco Bay Area. At March 31, 2012, the company owned 11.8 million
rentable square feet of commercial office space and 3.4 million rentable
square feet of industrial space. More information is available at
http://www.kilroyrealty.com .

SOURCE: Kilroy Realty Corporation


        Kilroy Realty Corporation
        Tyler H. Rose
        Executive Vice President
        and Chief Financial Officer
        (310) 481-8484
        or
        Michelle Ngo
        Vice President
        and Treasurer
        (310) 481-8581

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Article source: http://www.marketwatch.com/story/kilroy-realty-corporation-continues-seattle-area-expansion-with-acquisitions-in-lake-union-and-bellevue-2012-06-04

Allied Properties Real Estate Investment Trust Announces Continued Expansion …

Thu, 10 Nov 2011 23:40:18 +0000

TORONTO, ONTARIO, Nov 10, 2011 (MARKETWIRE via COMTEX) –
Allied Properties REIT

/quotes/zigman/26584 CA:AP.UN
+0.59%

announced today that it has
entered into agreements to purchase the following properties for $112
million:


                                                 Total    Office    Retail   Parking
        Address                                    GLA       GLA       GLA    Spaces
        ----------------------------------------------------------------------------
        Leeson and Lineham Block, Calgary       30,770    25,594     5,176         4
        Westcoast Building, Calgary             19,499    19,499         0         9
        The Chambers, Ottawa                   211,110   196,328    15,951       144
        ----------------------------------------------------------------------------
        Total                                  261,379   241,421    21,127       157
        ----------------------------------------------------------------------------

Allied also announced that it has entered into an agreement to sell 67
Richmond Street West in Toronto for $13.5 million.

With the acquisitions announced today, Allied has completed or
announced 23 acquisitions in 2011 for $461 million. “On closing of
these acquisitions, we’ll have established five new target markets in
a short period of time,” said Michael Emory, President CEO. “While
adhering to our investment and operating focus, we’ve propelled our
urban office portfolio to a national scale and significantly boosted
our annual AFFO per unit in the process.”

Calgary Acquisitions

Located on the Stephen Avenue Mall, immediately west of Fashion
Central, which Allied acquired earlier this year, the Leeson and
Lineham Block (209 – 8th Avenue S.W.) is a restored heritage property
comprised of 30,770 square feet of GLA and four surface parking
spaces. It is fully leased to tenants consistent in character and
quality with Allied’s tenant base. Built in 1910 as one of several
business blocks, the property was extensively restored and renovated
between 1998 and 2000. It is on the Inventory of Evaluated Historic
Resources maintained by the City of Calgary.

Located on the 11th Avenue S.W., in close proximity to the Roberts
Block, which Allied acquired earlier this year, the Westcoast
Building (522 – 11th Avenue S.W.) is a restored heritage property
comprised of 19,499 square feet of GLA and nine surface parking
spaces. It is fully leased to tenants consistent in character and
quality with our tenant base. Built in 1912 as a warehouse, the
property was extensively restored and renovated in the 1980s. It is
on the Inventory of Evaluated Historic Resources maintained by the
City of Calgary.

Ottawa Acquisition

Located on the southwest corner of Sparks and Elgin, just west of
Confederation Square and a half-block south of the Parliament
Buildings, The Chambers (40-46 Elgin Street) is comprised of four
contiguous structures, three of which are heritage buildings and the
fourth of which is a 14-storey office building. Similar to what
Allied envisages with respect to its large-scale intensification
project at QRC West, the property is comprised of 211,110 square feet
of GLA and 144 underground parking spaces. It is 96.5% leased to
investment-grade tenants, including the National Capital Commission
(70% of the GLA) and Shaw Communications. The leases have a weighted
average lease term in excess of 6.7 years. The heritage components of
the property–The Scottish-Ontario Chambers, The Central Chambers and
The Bell Block–were constructed between 1867 and 1891, renovated
extensively in 1994 and are designated under the Ontario Heritage
Act. The newer component of the property was constructed in 1994.

Toronto Disposition

Located on the south side of Richmond Street, just west of the
intersection with Bay Street, 67 Richmond Street West is comprised of
50,122 square feet of GLA and is fully leased. It has no strategic
significance in the context of Allied’s portfolio. On disposition at
the sale price, the property will have afforded a very high internal
rate of return to Allied’s unitholders over a six-year period.

Closings and Financing

The disposition is expected to close in December of 2011, and the
acquisitions are expected to close by the end of February, 2012, in
all cases subject to customary conditions. The purchase price for the
three properties to be acquired represents a capitalization rate of
approximately 6.7% applied to the annual net operating income (“NOI”)
in year one. On closing, the Leeson and Lineham Block will be subject
to a first mortgage financing in the approximate principal amount of
$5.24 million, having a term expiring in July of 2013, bearing
interest at 4.25% per year and payable in blended instalments of
principal and interest based on a 25-year amortization period. The
Chambers will be subject to a first mortgage in the principal amount
of $52.4 million, having a term expiring in September of 2018,
bearing interest at an effective rate of 3.8% per year and payable in
blended instalments of principal and interest based on a 20-year
amortization period. The remaining property will be free and clear on
closing. Allied will fund the acquisitions with proceeds from
recently completed first mortgage financings.

Cautionary Statements

This press release may contain forward-looking statements with
respect to Allied, its operations, strategy, financial performance
and condition. These statements generally can be identified by use of
forward looking words such as “may”, “will”, “expect”, “estimate”,
“anticipate”, intends”, “believe” or “continue” or the negative
thereof or similar variations. The actual results and performance of
Allied discussed herein could differ materially from those expressed
or implied by such statements. Such statements are qualified in their
entirety by the inherent risks and uncertainties surrounding future
expectations, including that the transactions contemplated herein are
completed. Important factors that could cause actual results to
differ materially from expectations include, among other things,
general economic and market factors, competition, changes in
government regulations and the factors described under “Risk Factors”
in Allied’s Annual Information Form, which is available at

www.sedar.com . These cautionary statements qualify all
forward-looking statements attributable to Allied and persons acting
on Allied’s behalf. Unless otherwise stated, all forward-looking
statements speak only as of the date of this press release and the
parties have no obligation to update such statements.

“Capitalization rate” is not a measure recognized under International
Financial Reporting Standards (“IFRS”) and does not have any
standardized meaning prescribed by IFRS. Capitalization rate is
presented in this press release because management of Allied believes
that this non-IFRS measure is relevant in interpreting the purchase
price of the properties being acquired. Capitalization rate, as
computed by Allied, may differ from similar computations as reported
by other similar organizations and, accordingly, may not be
comparable to capitalization rate reported by such organizations.

NOI is not a measure recognized under IFRS and does not have any
standardized meaning prescribed by IFRS. NOI is presented in this
press release because management of Allied believes that this
non-IFRS measure is relevant in interpreting the purchase price of
the property being acquired. NOI, as computed by Allied, may differ
from similar computations as reported by other similar organizations
and, accordingly, may not be comparable to NOI reported by such
organizations.

Allied Properties REIT is a leading owner, manager and developer of
urban office environments that enrich experience and enhance
profitability for business tenants operating in Canada’s major
cities. Its objectives are to provide stable and growing cash
distributions to unitholders and to maximize unitholder value through
effective management and accretive portfolio growth.


        Contacts:
        Allied Properties Real Estate Investment Trust
        Michael R. Emory
        President and Chief Executive Officer
        (416) 977-0643
        memory@alliedpropertiesreit.com

SOURCE: Allied Properties Real Estate Investment Trust


        mailto:memory@alliedpropertiesreit.com

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Article source: http://www.marketwatch.com/story/allied-properties-real-estate-investment-trust-announces-continued-expansion-in-western-canada-expansion-into-ottawa-and-disposition-of-non-core-asset-in-toronto-2011-11-10?reflink=MW_news_stmp