Acquisitions (Tables)

9 Months Ended

Sep. 30, 2018

During the nine months ended September 30, 2018, we acquired the three operating properties listed below from an unrelated third party. The acquisition was funded with proceeds from the Company’s unsecured revolving credit facility and unsecured term loan facility.



Property	Date of Acquisition	Number of Buildings	Rentable Square Feet (unaudited)	Purchase Price (in millions) ⁽¹⁾
345, 347 & 349 Oyster Point Boulevard, South San Francisco, CA	January 31, 2018	3	145,530	$	111.0

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(1)	Excludes acquisition-related costs.

During the nine months ended September 30, 2018, we acquired the following development site, which is located adjacent to the three operating properties we acquired in January 2018, from an unrelated third party. The acquisition was funded with proceeds from the Company’s unsecured revolving credit facility and the Company’s at-the-market stock offering program.



Project	Date of Acquisition	City/Submarket	Type	Purchase Price (in millions) ⁽¹⁾
Kilroy Oyster Point	June 1, 2018	South San Francisco	Land	$	308.2

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(1)

Excludes acquisition-related costs. In connection with this acquisition, we also recorded $40.6 million in accrued liabilities and environmental remediation liabilities at the date of acquisition, which are not included in the purchase price above. As of September 30, 2018, the purchase price and assumed liabilities are included in undeveloped land and construction in progress and the assumed liabilities are included in accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets.

Schedule of estimated fair values of the assets acquired and liabilities assumed

The following table summarizes the assets acquired and liabilities assumed as of the date of acquisition, excluding acquisition-related costs:



	Total 2018 Operating Property Acquisitions

Assets
Land and improvements	$	50,928
Buildings and improvements ⁽¹⁾	59,123
Deferred leasing costs and acquisition-related intangible assets ⁽²⁾	4,470
Total assets acquired	$	114,521
Liabilities
Deferred revenue and acquisition-related intangible liabilities ⁽³⁾	$	3,521
Total liabilities assumed	3,521
Net assets and liabilities acquired	$	111,000

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(1)	Represents buildings, building improvements and tenant improvements.


(2)	Represents in-place leases (approximately $3.8 million with a weighted average amortization period of 2.6 years) and leasing commissions (approximately $0.7 million with a weighted average amortization period of 3.5 years).


(3)	Represents below-market leases (approximately $3.5 million with a weighted average amortization period of 9.8 years).