Kilroy Realty has quietly cashed out of two of Hollywood's most visible apartment towers, closing a roughly $202 million deal in April that slices its Southern California residential footprint and continues a broader portfolio reshuffle.
Deal details from Kilroy's filing
In its April 27 earnings release filed with the SEC, Kilroy reported that the sale closed in April and produced $202.0 million in gross sales proceeds. The company identified the properties as the 200-unit Columbia Square Living at 1550 North El Centro Avenue and the 193-unit Jardine at 6390 De Longpre Avenue, and it classified both towers as held for sale during the quarter, according to the SEC.
Buyer remains undisclosed
The buyer did not get a name check in Kilroy's statement and still has not been publicly identified, as reported by The Real Deal. Both towers sit within Kilroy's Columbia Square and On Vine mixed-use campuses, with On Vine already landing creative office tenants that include Netflix.
Financial impact on Kilroy
Even with leasing performance holding up elsewhere, Kilroy posted a net loss of about $19.3 million for the quarter ended March 31. The company said the red ink stems largely from an approximately $61.8 million impairment used to reduce the carrying value of the Hollywood residential towers to fair value less closing costs. Kilroy also said management had been “active on the capital allocation front,” selling non-core assets, repurchasing shares, and raising FFO guidance as it rebalanced the portfolio, per the company's release.
How the towers fit into Hollywood's redevelopment
Columbia Square and the On Vine parcels have been central to the reinvention of several blocks south of the Cinerama Dome into campus-style hubs for entertainment and tech tenants, a wave of change chronicled by the Los Angeles Times. That visibility made the two apartment buildings standout multifamily assets for Kilroy, even as the REIT decided this was the moment to cash in.
What comes next
The Hollywood sale slots into a broader run of transactions. Kilroy also reported an approximately $21 million sale of the Del Mar Tech Center and earlier San Diego campus dispositions, while picking up a Torrey Pines life-sciences campus, which moves the company framed as capital recycling. After these trades, Kilroy's remaining Southern California multifamily exposure sits mostly in San Diego, including One Paseo and a tower under development in East Village, signaling a pullback from operating rentals in Hollywood, according to The Real Deal.
