Company to Commence Construction With 65% of
Office Space Leased
Kilroy Realty Corporation (NYSE: KRC) announced today
that it broke ground on 100 Hooper, a $270 million, 400,000 square
foot project located in the SOMA district of San Francisco. Adobe,
one of the largest software companies in the world, has leased
207,000 square feet of the project.
100 Hooper Street is a LEED Platinum-designed, premier
development project fully entitled for 314,000 square feet of
office and 86,000 square feet of Production, Distribution and
Repair (PDR) space in two, four-story buildings on a 3.3-acre site.
The site is located in the transformative SOMA neighborhood of
Showplace Square at the intersection of Hooper Street and 7th
Street, just west of Interstate 280 and in easy biking and walking
distance of the vibrant residential neighborhoods of Mission Bay,
Potrero Hill, and Dogpatch. In addition, the site is adjacent to
the California College of Arts and within walking distance of the
University of California, San Francisco Mission Bay Campus.
The project is well served by public transportation, including
direct access to the Mission Bay Shuttle, connecting BART and
Caltrain, as well as the Central Corridor Subway. 100 Hooper is
within a 15-minute walk of AT&T Park and the future Golden
State Warriors Sports and Entertainment Center. It occupies a
strategic location in a proven technology cluster surrounded by
prominent technology companies, including Advent, AirBnB,
Pinterest, salesforce.com and Zynga.
Adobe, which has its main San Francisco presence just blocks
from 100 Hooper, has signed a long-term lease for 207,000 square
feet, or approximately 65% of 100 Hooper’s office space. Adobe will
occupy 155,000 square feet initially and 52,000 square feet within
15 months of construction completion that is projected to occur in
2018.
The project will include large, efficient floor plates of
approximately 50,000 square feet, an active communal plaza,
inter-connecting sky-bridges, a roof top deck and views of San
Francisco’s skyline. The project’s 86,000 square feet of PDR space
is specifically designed for early-stage innovators, inventors, and
craftspeople performing design, manufacturing, production and
related activities.
“We are extremely pleased that Adobe, a world-class company, has
decided to take a majority of the office space at 100 Hooper,” said
Mike Sanford, KRC’s Executive Vice President, Northern California.
“The interplay between class A office and manufacturing space makes
100 Hooper one of the most unique technology campuses in SOMA. The
city of San Francisco embodies a diverse economy with a healthy and
vibrant mix of businesses and residents. PDR businesses contribute
to that diversity and are a fundamental part of what makes San
Francisco such a desirable work environment.”
About Kilroy Realty Corporation. With nearly 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 September 30, 2016, the company’s stabilized portfolio
totaled 13.6 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 178 North American
participants across all asset types. At the end of the third
quarter, the company’s properties were 51% LEED certified and 72%
of eligible properties were ENERGY STAR certified. In addition, KRC
had one office project totaling approximately 700,000 square feet
under construction and two office projects in lease-up totaling
approximately 450,000 square feet. 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: global market and general
economic conditions and their effect on our liquidity and financial
conditions and those of our tenants; adverse economic or real
estate conditions generally, and specifically, in the States of
California and Washington; investment in our real estate assets,
which are illiquid; trends in the real estate industry; defaults on
or non-renewal of leases by tenants; any significant downturn in
tenants’ businesses; our ability to release property at or above
current market rates; costs to comply with government regulations,
including environmental remediations; the availability of cash for
distribution and debt service and exposure to risk of default under
debt obligations; increases in interest rates and our ability to
manage interest rate exposure; failure of interest rate hedging
contracts to perform as expected and the effectiveness of such
arrangements; the availability of financing on attractive terms or
at all, which may adversely impact our future interest expense and
our ability to pursue development, redevelopment and acquisition
opportunities and refinance existing debt; a decline in real estate
asset valuations, which may limit our ability to dispose of assets
at attractive prices or obtain or maintain debt financing;
significant competition, which may decrease the occupancy and
rental rates of properties; potential losses that may not be
covered by insurance; the ability to successfully complete
acquisitions and dispositions on announced terms; the ability to
successfully operate acquired, developed and redeveloped
properties; the ability to successfully complete development and
redevelopment projects on schedule and within budgeted amounts;
delays or refusals in obtaining all necessary zoning, land use and
other required entitlements, governmental permits and
authorizations for our development and redevelopment properties;
increases in anticipated capital expenditures, tenant improvement
and/or leasing costs; defaults on leases for land on which some of
our properties are located; adverse changes to, or implementations
of, applicable laws, regulations or legislation; risks associated
with joint venture investments, including our lack of sole
decision-making authority, our reliance on co-venturers' financial
condition and disputes between us and our co-venturers;
environmental uncertainties and risks related to natural disasters;
and our ability to maintain our status as a REIT. 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/20161110006405/en/
Kilroy Realty CorporationTyler H. RoseExecutive Vice
Presidentand Chief Financial Officer(310) 481-8484orMichelle
NgoSenior Vice Presidentand Treasurer(310) 481-8581
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