The seller, Kilroy Realty, confirmed on the 8th that they have agreed to sell the Exchange, the headquarters building leased by Dropbox, for $1 billion and $8 million. located at 1800 Owens Street in San Francisco’s Misham Bay, the Exchange consists of four buildings with a total area of 750,000 square feet, at a unit price of $1,440 per square foot. The price is the highest in San Francisco’s history. The deal is second only to Boston Property’s $1.2 billion acquisition of Embarcadero Center in 1998, but Embarcadero Center is four times the size of the Exchange.
Kilroy Realty would not say who the buyer was, but sources indicated that the buyer was private equity giant KKR (Kohlberg Kravis Roberts).
The San Francisco real estate market barely signed any big leases last year due to the new crown Epidemic and the permanent telecommuting policy adopted by many companies, including Dropbox. However, the Exchange remains popular with tenants, especially in the biotech industry, because it can be set up as lab space. As a result, Vir Biotechnology leased 133,896 square feet of office space from Dropbox late last year after Dropbox released a sublease offer.
Kilroy Realty CEO John Kilroy released a statement saying, “This transaction illustrates that high-quality properties in high-quality locations remain highly attractive to buyers, resulting in record prices.”
Kilroy Realty bought the Exchange for $58.5 million and leased all of the Exchange offices to Dropbox in 2017, at the Time the largest lease in San Francisco, but that record was broken in 2018 when Facebook leased the entire Park Tower in the Transbay district (Transbay).
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