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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JANUARY 13, 1998
KILROY REALTY CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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MARYLAND COMMISSION FILE NUMBER: 95-4598246
(STATE OR OTHER JURISDICTION 1-12675 (I.R.S. EMPLOYER
OF INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
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2250 EAST IMPERIAL HIGHWAY, SUITE 1200, EL SEGUNDO, CALIFORNIA 90245
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (310) 563-5500
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
Between January 13, 1998 and February 13, 1998, Kilroy Realty L.P., a
Delaware limited partnership in which Kilroy Realty Corporation, a Maryland
corporation, is the sole general partner (collectively referred to herein as
the "Company"), consummated five separate acquisitions of office and
industrial properties with approximately 576,000 aggregate rentable square
feet for an aggregate purchase price of approximately $68,900,000. The
acquisitions were financed with approximately $68,000,000 of working capital
and, for the Reno, Nevada acquisition, with the issuance of 30,827 units of
common limited partnership interest in Kilroy Realty, L.P. valued at
approximately $900,000 based on a unit price predetermined by the parties
involved. Except for the industrial building located in Reno, Nevada, which is
described more fully below, none of the selling entities were affiliated with
the Company and each acquisition was based on arms-length negotiations.
The Company acquired one office building in Los Angeles, California on
January 13, 1998 for approximately $7,500,000 from Olybund LLC, a California
limited liability company. The office building contains approximately 48,000
rentable square feet and is presently 85% leased with an average monthly rent
per square foot of $1.07. The quoted market rental rate for comparable office
buildings in Los Angeles is $1.06 per square foot.
On January 15, 1998, the Company acquired four office buildings in
Fullerton, California for approximately $10,600,000 from Red Eagle Properties,
Ltd., a California limited partnership. The office buildings contain
approximately 149,000 aggregate rentable square feet and are presently 90%
leased with an average monthly rent per square foot of $0.89. The quoted
market rental rate for comparable office buildings in Fullerton is $0.90 per
square foot.
The Company acquired one office building in Santa Monica, California on
January 23, 1998 for approximately $16,500,000 from 501 Santa Monica Partners,
L.P., a California limited partnership. The office building contains
approximately 70,000 rentable square feet and is presently 98% leased with an
average monthly rent per square foot of $1.78. The quoted market rental rate
for comparable office buildings in Santa Monica is $2.08 per square foot.
On January 30, 1998, the Company acquired three office buildings in San
Jose, California for approximately $27,400,000 from Limar Realty Corporation
#17, a California corporation. The office buildings contain approximately
234,000 aggregate rentable square feet and are presently 46% leased with an
average monthly rent per square foot of $0.53. The quoted market rental rate
for comparable office buildings in San Jose is $1.25 per square foot.
The Company acquired one industrial building in Reno, Nevada on February 13,
1998 for approximately $6,900,000 from ADI Memec Partners, a California
limited partnership, which is an affiliate of The Allen Group. The purchase is
the first in the second phase of transactions pursuant to the Contribution
Agreement entered into by and between the Company and the Allen Group in
October 1997 (previously filed in a Current Report on Form 8-K (No. 1-12675)
dated November 7, 1997). The industrial building contains approximately 75,000
rentable square feet and is presently 100% leased with an average monthly rent
per square foot of $0.76. The quoted market rental rate for comparable
industrial buildings in Reno is $0.51 per square foot.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial statements of properties acquired.
The required financial statements for the acquired properties will be filed
within 60 days.
(b) Pro forma financial information.
The required pro forma financial information for the acquired properties will
be filed within 60 days.
(c) Exhibits
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EXHIBIT
NO. DESCRIPTION
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*2.1 Contribution Agreement, dated October 21, 1997, by and between
Kilroy Realty, L.P. and Kilroy Realty Corporation and The Allen
Group and the Allens.
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* Previously filed as an exhibit to the Registrant's Current Report on Form 8-
K/A (No. 1-2675) dated October 29, 1997 and incorporated herein by
reference.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
KILROY REALTY CORPORATION
/s/ Ann Marie Whitney
Date: February 27, 1998 By: _________________________________
Name: Ann Marie Whitney
Title: Vice President and
Controller
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EXHIBIT INDEX
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EXHIBIT
NUMBER DESCRIPTION
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*2.1 Contribution Agreement, dated October 21, 1997, by and between Kilroy
Realty, L.P. and Kilroy Realty Corporation and The Allen Group and the
Allens.
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* Previously filed as an exhibit to the Registrant's Current Report on Form 8-
K/A (No. 1-12675) dated October 29, 1997 and incorporated herein by
reference.
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