Kilroy Closes Escrow on Santa Monica Deal

El Segundo-based Kilroy Realty Corp. has closed escrow on its second Santa Monica property in the space of a few weeks. The real estate investment trust last week purchased 501 Santa Monica, a 72,000-square-foot office on the northeast corner of 5th Street and Santa Monica Boulevard, from KMK Realty for $16.35 million, according to Tony Dorn of Beitler Commercial Realty Services, which represented Kilroy in the deal. The price underlines the escalating values in the trendy area. KMK had purchased the property in 1996 for $13.5 million, 21% less than Kilroy paid. The 22-year-old building is 100% leased, primarily to Century Federal Bank. In recent weeks, Kilroy also purchased land and a vacant building along Olympic Boulevard, where it plans to build additional offices. In a separate development, Kilroy filed with the Securities and Exchange Commission to sell as much as $400 million of securities. Kilroy shares were unchanged at $28.50 on the NYSE.