Kilroy Realty Completes Acquisition of Additional Site for Its San Francisco Flower Mart Project
March 14 2016 - 8:00AM
Business Wire
Kilroy Realty Corporation (NYSE:KRC) today said it has
completed the acquisition of an approximately 1.75 acre site at the
corner of 5th and Brannan Streets, immediately adjacent to The
Flower Mart development site the company currently owns in the
heart of San Francisco’s South of Market (“SoMa”) neighborhood. KRC
purchased the site from a private family for approximately $31
million in cash and 867,701 Kilroy Realty, L.P. operating
partnership units.
KRC now owns a total of approximately seven acres on Brannan
Street between 5th and 6th Streets, with the addition of the newly
acquired site. The company has been working on the land assemblage
for several years and completed the acquisition of the first parcel
in late 2014.
Upon city approval, the company plans to develop a world class
office, retail and flower mart project, including approximately 2.1
million square feet of office and retail space. Plans for the
project include a dynamic mix of creative office, market hall style
retail and wholesale flower mart surrounded by a central public
plaza that embodies the rich urban history of the area. The site
has been and will continue to be the home to a thriving wholesale
flower market that will be redeveloped into a modern,
state-of-the-art facility, which will provide an anchor for the
company’s development plans.
The project represents one of the largest remaining commercial
development opportunities in the city’s downtown area. It is
located just one block from the 4th and Brannan stop of the future
Central Subway. The newly acquired site, with its corner location,
will add significant market presence to the already well-located
project.
About Kilroy Realty Corporation
With more than 65 years’ experience owning, developing,
acquiring and managing real estate assets in West Coast real estate
markets, Kilroy Realty Corporation (KRC), a publicly traded real
estate investment trust and member of the S&P MidCap 400 Index,
is one of the region’s premier landlords. The company provides
physical work environments that foster creativity and productivity
and serves a broad roster of dynamic, innovation-driven tenants,
including technology, entertainment, digital media and health care
companies.
At December 31, 2015, the company’s stabilized portfolio
totaled 13.0 million square feet of office properties, all
located in the coastal regions of greater Seattle, the San
Francisco Bay Area, Los Angeles, Orange County and San Diego. The
company is recognized by GRESB as the North American leader in
sustainability and was ranked first among 155 North American
participants across all asset types. At the end of the fourth
quarter, the company’s properties were 47% LEED certified and 64%
of eligible properties were ENERGY STAR certified. In addition, KRC
had approximately 1.9 million square feet of office and
mixed-use development under construction with a total estimated
investment of approximately $1.2 billion. More information is
available at http://www.kilroyrealty.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements are based on our current
expectations, beliefs and assumptions, and are not guarantees of
future performance. Forward-looking statements are inherently
subject to uncertainties, risks, changes in circumstances, trends
and factors that are difficult to predict, many of which are
outside of our control. Accordingly, actual performance, results
and events may vary materially from those indicated in
forward-looking statements, and you should not rely on
forward-looking statements as predictions of future performance,
results or events. Numerous factors could cause actual future
performance, results and events to differ materially from those
indicated in forward-looking statements, including, among others,
risks associated with: investment in real estate assets, which are
illiquid; trends in the real estate industry; significant
competition, which may decrease the occupancy and rental rates of
properties; the ability to successfully complete acquisitions and
dispositions on announced terms; the ability to successfully
operate acquired properties; the availability of cash for
distribution and debt service and exposure of risk of default under
debt obligations; adverse changes to, or implementations of,
applicable laws, regulations or legislation; and the ability to
successfully complete development and redevelopment projects on
schedule and within budgeted amounts. These factors are not
exhaustive. For a discussion of additional factors that could
materially adversely affect our business and financial performance,
see the factors included under the caption “Risk Factors” in our
annual report on Form 10-K for the year ended
December 31, 2015 and our other filings with the
Securities and Exchange Commission. All forward-looking statements
are based on information that was available, and speak only as of
the date on which they are made. We assume no obligation to update
any forward-looking statement made in this press release that
becomes untrue because of subsequent events, new information or
otherwise, except to the extent required in connection with ongoing
requirements under U.S. securities laws.
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version on businesswire.com: http://www.businesswire.com/news/home/20160314005258/en/
Kilroy Realty CorporationTyler H. RoseExecutive Vice
Presidentand Chief Financial Officer310-481-8484orMichael L.
SanfordExecutive Vice President,Northern California415-778-5678
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