Kilroy Realty Delivers 641,000 Square Feet in New San Francisco LEED Platinum Office Development
April 27 2016 - 5:33PM
Business Wire
West Coast Real Estate Investment Trust Has
Also Inked Commitments That Now Cover 80% of New Office Space at
Its Columbia Square Development in Hollywood
Kilroy Realty Corporation (NYSE: KRC) announced today
that it stabilized two San Francisco office development projects
totaling 641,000 square feet and signed letters of intent for an
additional 83,000 square feet at its mixed-used Columbia Square
development in Hollywood that increased the committed portion of
the project’s office space to 80%.
The two San Francisco properties include 350 Mission Street, a
30-story glass and concrete office tower leased to salesforce.com,
inc. located immediately across from the city’s new Transbay
Transit Center, and 333 Brannan Street, a six-story brick and
concrete building leased to Dropbox, Inc. located in the eastern
end of the SOMA district. The two properties have been in
development since 2012 and 2013, respectively, with 350 Mission
Street being the first high-rise LEED Platinum ground-up
development constructed in San Francisco. The aggregate investment
for 350 Mission Street and 333 Brannan Street is approximately $381
million.
KRC’s Columbia Square project is a $461 million mixed-use, LEED
Gold development in the heart of Hollywood that encompasses three
phases totaling 685,000 square feet of office, retail and
residential space along with a five-level subterranean parking
structure. Phase 1 consists of the redevelopment of the original
William Lescaze-designed radio and business buildings encompassing
110,000 square feet, which was built in 1938 as the first West
Coast home of the Columbia Broadcasting System. The two buildings
are fully occupied by NeueHouse, a private workspace collective,
and were stabilized in 2015. Phases 2 and 3 consist of 370,000
square feet of newly developed office space and a residential tower
consisting of 200 furnished and unfurnished units.
KRC completed Phase 2, the newly constructed office space,
during the first quarter and executed leases in 2014 and 2015 with
Viacom and Fender Music to take just under 215,000 square feet of
space with occupancy projected for later this year. During the
first quarter of 2016, the company signed letters of intent
covering an additional 83,000 square feet of office space,
increasing to 85% the commercial office portion of the project now
leased or committed.
“For several years now, West Coast commercial real estate
markets have been among the strongest performers in the nation,”
said John Kilroy, KRC’s chairman, president and chief executive
officer, “and our recent experience suggests that well-located,
high quality contemporary office space remains in high demand.”
About Kilroy Realty Corporation. With almost 70 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 March 31, 2016, the company’s stabilized portfolio
totaled 13.7 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, ranking first among 155 North American
participants across all asset types. At the end of the first
quarter, the company’s properties were 46% LEED certified and 66%
of eligible properties were ENERGY STAR certified. In addition, KRC
had approximately 905,000 square feet of office and residential
projects under construction with a total estimated investment of
approximately $645.0 million. 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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Kilroy Realty CorporationTyler H. RoseExecutive Vice
Presidentand Chief Financial Officer(310) 481-8484orMichelle
NgoSenior Vice Presidentand Treasurer(310) 481-8581
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