KKR Acquires The Exchange in San Francisco’s Mission Bay, to be Operated by Longfellow Real Estate Partners
March 31 2021 - 5:00PM
Business Wire
KKR Further Expands West Coast Real Estate
Presence with Trophy Life Science-Capable Property
KKR, a leading global investment firm, today announced that it
has acquired The Exchange on 16th, a 750,000-square-foot Class A
office complex, from Kilroy Realty Corporation for approximately $1
billion. Longfellow Real Estate Partners, a life science focused,
vertically integrated real estate developer and manager, will work
with KKR to operate the property. KKR is making the investment
through its core plus real estate strategy.
Built in 2018 in the heart of San Francisco’s highly desirable
Mission Bay submarket, The Exchange is a center for life sciences
and technology on the West Coast comprised of four interconnected
buildings. The property’s state-of-the-art design holds both LEED
Platinum and WELL Core & Shell Gold certifications, as well as
lab-ready infrastructure for life science tenancy. The property is
currently 100% leased to a leading publicly traded technology
company.
“We are thrilled to be building on our deep commitment to the
West Coast real estate market with the purchase of this premier
property in Mission Bay, a highly attractive location serving as a
world-class innovation center,” said Justin Pattner, KKR Partner
and Head of Real Estate Equity in the Americas. “We remain focused
on opportunities to add quality real estate assets to our
portfolios, and The Exchange is a prime example. We believe our
long-term investment is supported by the region’s robust academic
and business community, accompanied by its impressive talent
base.”
“Working alongside KKR, The Exchange provides us an exciting
opportunity to have a transformative presence in Mission Bay,
bringing our world class capabilities and scale to bear,” said
Jamison Peschel, Co-Founder and Senior Partner of Longfellow Real
Estate Partners. “We are long-term believers in the Bay Area market
and we’re looking forward to working with the existing tenant to
capitalize on the strength of the life science and technology
industries in the Mission Bay cluster.”
Inclusive of The Exchange, KKR real estate funds have acquired
in excess of $3.5 billion across asset classes on the West Coast
over the last 24 months. Since launching a dedicated real estate
platform in 2011, KKR has grown its real estate assets under
management to approximately $28 billion across the U.S., Europe and
Asia Pacific as of December 31, 2020 (pro forma to include Global
Atlantic’s assets following KKR’s acquisition of Global Atlantic on
February 1, 2021). KKR’s global real estate team consists of
approximately 100 dedicated investment professionals, spanning both
the equity and credit business, across 11 offices and eight
countries.
About KKR
KKR is a leading global investment firm that offers alternative
asset management and capital markets and insurance solutions. KKR
aims to generate attractive investment returns by following a
patient and disciplined investment approach, employing world-class
people, and supporting growth in its portfolio companies and
communities. KKR sponsors investment funds that invest in private
equity, credit and real assets and has strategic partners that
manage hedge funds. KKR’s insurance subsidiaries offer retirement,
life and reinsurance products under the management of The Global
Atlantic Financial Group. References to KKR’s investments may
include the activities of its sponsored funds and insurance
subsidiaries. For additional information about KKR & Co. Inc.
(NYSE: KKR), please visit KKR’s website at www.kkr.com and on
Twitter @KKR_Co.
About Longfellow Real Estate Partners
Longfellow Real Estate Partners serves the unique demands of
science and technology companies and focuses on the most innovative
cluster locations in the US. The firm acquires and develops
facilities in strategic locations and builds long-term
relationships with research centric organizations including life
science companies, universities, medical centers and research
institutes. The principals of Longfellow have acquired or developed
more than 10 million square feet of laboratory and technology space
over their careers including numerous high profile projects on the
East Coast. The Company’s institutional capabilities and
entrepreneurial vision enables Longfellow to deliver high quality
laboratories and innovation space while satisfying each tenant’s
unique requirements. For more information about Longfellow, please
email info@lfrep.com
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version on businesswire.com: https://www.businesswire.com/news/home/20210331005985/en/
Media KKR Cara Major or Miles Radcliffe-Trenner
212-750-8300 media@kkr.com
Longfellow Real Estate Partners Erin Holin 917-232-0701
longfellow@berlinrosen.com
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