Kilroy Realty (KRC) Obtains $375M Secured Loan

Kilroy Realty Corporation (NYSE: KRC) announced today that it has obtained an eleven-year, non-recourse secured loan for $375 million provided by New York Life Insurance Company. The loan bears interest at a fixed rate of 5.90% on an interest-only basis and matures on August 10th, 2034.

One Paseo is a world-class, mixed-use campus that spans across 36 acres located in San Diego’s vibrant submarket of Del Mar. The loan is secured by the portion of the Company’s One Paseo campus that is on 23 acres, was developed in phases from 2019-2021, and is comprised of two office buildings, 608 apartment units and over 95,000 square feet of retail.

The Company intends to use proceeds from the loan for general corporate purposes, including funding development and reserving funds to address its December 2024 unsecured bond maturity. Kilroy’s debt capitalization has an average duration of approximately six years and a well staggered maturity with an average of approximately 6% coming due each year for the next three years.

“Against a challenging capital market backdrop, we are very pleased with this loan execution, which further fortifies our already strong balance sheet and liquidity position, while establishing a new partnership with a world class life insurance company,” said John Kilroy, the Company’s CEO. “Kilroy has an unrivaled portfolio of young, high quality assets across multiple property types which uniquely positions us to efficiently access the capital markets to bolster KRC’s platform optionality.”

JLL and Allen Matkins advised the Company on the transaction.

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