Dropbox sells building for $1.08 billion, second largest RE sell in SF history and highest price per square foot

Owner Kilroy Realty said Monday it has agreed to sell the 750,000-square-foot property for around $1,440 per square foot, the highest price per square foot in city history. The four-building complex at 1800 Owens St. is branded as the Exchange.

Kilroy Realty declined to name the buyer. A source with knowledge of the deal who wasn’t authorized to speak publicly said it was KKR, the private equity giant. KKR declined to comment.

The coronavirus pandemic has disrupted San Francisco’s real estate boom, with almost no major leases signed last year and numerous companies including Dropbox adopting a permanent remote work policy. But the Exchange remains appealing to tenants, including in the growing biotech sector, because it can be configured as lab space. After Dropbox listed around half of the building for sublease, Vir Biotechnology took 133,896 square feet late last year.

“This transaction demonstrates that quality assets in quality locations remain highly attractive to buyers and in this case generated a record price,” said John Kilroy, CEO of Kilroy Realty, in a statement.