Benzinga | Mar 8, 2021 12:01PM EST

Kilroy Realty Shares Are Trading Higher As It Sets To Sell 'The Exchange On 16th' Property For $1.08B

* Kilroy Realty Corp (NYSE: KRC) inked an agreement to sell The Exchange on 16th, its 750,000 square-foot office property located at Owens Street in San Francisco's Mission Bay neighborhood, for a purchase price of $1.08 billion or $1,440 per square foot.

* It is touted as the highest per-square-foot sales price for a major property in the city's commercial real estate market.

* The transaction is currently in escrow. It signifies the demand for quality assets in quality locations and reflects buyer excitement in San Francisco property as per Kilroy CEO John Kilroy.

* KRC began developing The Exchange in late 2015 and signed a 15-year lease with Dropbox, Inc (NASDAQ: DBX) for the entire office component of the property in 2017. The total development cost for the project was $585 million or $780 per-square-foot.

* Kilroy's cash and cash equivalent totaled $823.1 million as of December 31, 2020.

* Price action: KRC shares are up 5.05% at $67.78 on the last check Monday.