KKR Acquires HQ @ First in Silicon Valley
August 02 2021 - 7:00AM
Business Wire
Adds prime single tenant property to the
portfolio of KKR Real Estate Select Trust
KKR, a leading global investment firm, today announced that KKR
Real Estate Select Trust Inc. (“KREST”) has acquired HQ @ First, a
603,666 square-foot Silicon Valley office campus, from MORI TRUST
CO., LTD., a Japan-based major real estate developer. KREST is a
continuously offered, registered closed-end fund open to all
investors delivering access to income-oriented private real estate
investments.
Located in North San Jose, HQ @ First is a Class A, modern
technology campus with three highly amenitized office buildings,
including over 60,000 square-feet in lab space, and a parking
garage with 1,600+ spaces. The property holds a LEED Gold
certification and offers direct access to the Silicon Valley’s
premier global technology corridor, transportation infrastructure
and best-in-class retail. The property is 100% leased on a
long-term basis to an investment-grade rated, leading publicly
traded global technology company and serves as the center of the
company’s strategic West Coast footprint.
“HQ @ First is a marquee property with great amenities,
including onsite lab facilities, and access to Silicon Valley’s
immense pool of talent,” said Justin Pattner, KKR Partner and Head
of Real Estate Equity in the Americas. “We believe well-located,
trophy assets that can deliver a dynamic work environment for
innovative growth companies will have significant staying power and
long-term value. We are excited to add this property to KREST’s
portfolio as part of our prime single tenant strategy.”
The investment is part of KREST’s prime single tenant investment
strategy, one of the fund’s three primary investment strategies,
which targets high-quality commercial real estate with long-term
leases to single investment grade tenants. The purchase grows the
value of underlying properties in KREST’s portfolio to more than $1
billion and continues KKR’s focus on investing in attractive
commercial real estate opportunities on the West Coast.
Inclusive of HQ @ First, KKR has acquired more than $4 billion
of properties on the West Coast over the last 24 months alone for
its real estate funds. 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 March 31, 2021. KKR’s global real estate
team consists of over 110 dedicated investment professionals,
spanning both the equity and credit business, across 11 offices and
eight countries.
Drawbridge Realty, a San Francisco-based real estate investment
manager (in which KKR has an ownership interest) with a portfolio
primarily of office properties leased long-term to large
corporations, has been engaged by KREST as the operating partner
for HQ @ First. An entity controlled by Drawbridge senior
management is a joint venture partner in the investment.
Newmark Knight Frank acted as broker on the sale.
About KREST
KKR Real Estate Select Trust Inc. (“KREST”) is a continuously
offered, registered closed-end fund that thematically invests in
high quality, stabilized, income-oriented commercial real estate
equity and debt. The fund is open to all investors with daily
subscriptions and its primary investment objective is to provide
attractive current income, with a secondary objective of long-term
capital appreciation. KREST is managed by KKR Registered Advisor
LLC, an affiliate of KKR & Co. Inc., and utilizes the
experience and reach of KKR’s global real estate team and the
resources available through the KKR platform. For additional
information about KREST, please visit its website at
www.krest.reit.
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.
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Media Cara Major or Miles Radcliffe-Trenner (212)
750-8300 media@kkr.com
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