KKR Agrees to Sell Riata Corporate Park in Austin, Texas

Rhea-AI Summary

KKR has agreed to sell Riata Corporate Park for over $300 million to a global institutional investor. The transaction is expected to close soon. Riata is an 688,100 square foot Class A office campus located in the Austin Technology Corridor, fully leased by reputable tenants, including public companies. Since acquiring Riata in December 2019, KKR has invested in property improvements and maintenance. KKR has significantly grown its real estate assets under management, reaching approximately $32 billion as of June 30, 2021.

Positive

• KKR is selling Riata Corporate Park for over $300 million, indicating strong market demand.
• The property is 100% leased, ensuring stable income and high-quality tenants.
• Significant capital improvements were made to Riata under KKR's ownership, enhancing its value.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- KKR, a leading global investment firm, today announced that KKR has agreed to sell Riata Corporate Park (“Riata”) to a global institutional investor in a deal valued at over $300 million. The transaction is anticipated to close in the coming months.

Riata Corporate Park is an eight building, 688,100 square foot, Class A office campus located in the Austin Technology Corridor in Northwest Austin, Texas. The campus is well located just minutes from The Domain, Austin’s premiere mixed used retail and entertainment hub. The property is 100% leased and occupied by a high-quality tenant group that includes publicly traded companies along with a mix of technology, financial services and healthcare businesses.

Since purchasing Riata in December 2019 through its Americas opportunistic real estate strategy together with Endeavor Real Estate Group (“Endeavor”), KKR has substantially upgraded the property’s fitness center, café, landscaping, outdoor amenities and other features. KKR and Endeavour also completed significant deferred maintenance.

“Our long-term focus on high-quality properties in great locations within attractive growth markets led us to invest in Riata, a tech-focused office campus in one of the country’s most desirable cities,” said Roger Morales, KKR Partner and Head of Real Estate Acquisitions. “We are proud of the property and capital improvements delivered under our ownership in what has been a very successful pre-pandemic office investment. Riata, one of three 50-acre office parks in the Northwest next to The Domain, is well positioned to continue benefitting from the net migration to Sunbelt cities as companies seek to deliver great live-work environments for employees.”

Since launching a dedicated real estate platform in 2011, KKR has grown real estate assets under management to approximately $32 billion across the U.S., Europe and Asia as of June 30, 2021. KKR’s global real estate team consists of approximately 130 dedicated investment professionals, spanning both the equity and credit business, across twelve offices and nine countries.

Cushman & Wakefield’s Institutional Capital Markets Team acted as real estate advisor to KKR.

About KKR

KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210910005080/en/

Cara Major and Miles Radcliffe-Trenner

+1 212 750 8300

media@kkr.com

Source: KKR

FAQ

What is the value of KKR's sale of Riata Corporate Park?

KKR is selling Riata Corporate Park for over $300 million.

When was Riata Corporate Park acquired by KKR?

KKR acquired Riata Corporate Park in December 2019.

Where is Riata Corporate Park located?

Riata Corporate Park is located in the Austin Technology Corridor in Northwest Austin, Texas.

What type of tenants occupy Riata Corporate Park?

Riata is fully leased to a high-quality tenant group that includes publicly traded companies and businesses in technology, financial services, and healthcare.

How much has KKR grown its real estate assets under management?

As of June 30, 2021, KKR's real estate assets under management reached approximately $32 billion.