KKR, a global investment firm, has, through its KKR Real Estate Select Trust Inc., acquired HQ @ First, a 603,666 square-foot Silicon Valley office campus, from Mori Trust Co Ltd., a Japan-based major real estate developer.
Located in North San Jose, HQ @ First is a Class A, modern technology campus with three amenitized office buildings.
“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.
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.