John Kilroy Jr.
Kilroy Realty Corp.
Specialty: Real estate developer, investor and manager
Recent Deals: Purchased majority of income-producing property of Ontario-based Mission Land Co. for $43.6 million.
John Kilroy Jr. is obviously unafraid of the investing public growing tired of REITs.
Last year’s public offering of Kilroy Realty Corp. raised $287.5 million well exceeding the $195 million that the company had originally hoped to raise. The share price rose another 10 percent during the REIT’s first NYSE trading day (although it’s slowed down noticeably since then).
Since the offering, Kilroy has been gobbling up Southern California office and industrial real estate at a breathtaking pace. As of mid-June, Kilroy announced 12 acquisitions for a total of 2.6 million square feet.
Local knowledge accounts for much of Kilroy’s success as does having lots of capital to put down. “He has a good reputation for understanding the real estate market and being able to move in a quick fashion,” said Bob Safai of Madison Partners.
The Kilroy name has been prominent in L.A. real estate circles going back 50 years, when Kilroy’s father, John Kilroy Sr., founded Kilroy Industries.
By turning the company into a REIT, John Kilroy Jr. became a publicly held acquisitor. One recent deal involved buying a majority of Ontario-based Mission Land Co.’s income-producing property in L.A., Orange and San Bernardino counties for $43.6 million.
Just before that deal was inked, the company had spent $15 million on an office building in Calabasas and a business park in Anaheim.
Kilroy has now arranged for a $150 million revolving credit line underwritten by J.P. Morgan Securities Inc., indicating that more acquisitions are sure to follow.
Lisa Steen Proctor