Historic agreement and renewed partnership
between KRC and wholesale flower vendors will guarantee a new
wholesale flower market is built in San Francisco
Kilroy Realty Corporation (NYSE: KRC) and San Francisco’s
wholesale flower vendors today reaffirmed their conceptual
agreement to guarantee that a new Wholesale Flower Market will be
built in San Francisco, either as part of KRC’s proposed San
Francisco Flower Mart office and retail project at Sixth and
Brannan, or at another location in San Francisco, to be determined
by the San Francisco Flower Mart Tenants Association, which
represents the wholesale vendors. This updated agreement between
KRC and the vendors comes as the San Francisco Planning Commission
gets ready to consider approval of KRC’s San Francisco Flower Mart
Central SoMa project on July 18th.
“This partnership represents five years of negotiations and
guarantees that the Wholesale Flower Market will always have a
permanent home in San Francisco, which has been our goal from day
one. The vendors wanted the option to choose the permanent
location, so that is what we are giving them. We’re excited both
for their future and the future of Central SoMa that the Flower
Mart Project represents,” said Mike Grisso, Senior Vice President
at KRC.
“Given the major changes planned for our current South of Market
neighborhood, we have asked for an agreement with Kilroy Realty
that gives us the option to move to a new location in San
Francisco, if we elect not to return to Sixth and Brannan,” said
Vance Yoshida, President of the San Francisco Flower Mart. “We are
very grateful for Kilroy Realty’s responsiveness to guarantee we
have the new permanent home we need in San Francisco.”
“After five years, and countless meetings with Kilroy Realty,
members of the Board of Supervisors, the Mayor’s office and the
community, we are close to an agreement that will provide a
state-of-the-art wholesale floral goods market in San Francisco,
which will maintain the visibility of our members’ businesses, the
jobs of their employees, and the convenience for their customers,”
said Louie Figone, President of the San Francisco Flower Mart
Tenants Association. “We strongly support the Flower Mart Project
because it will allow us to turn our vision for a new permanent
home in San Francisco into reality.”
The Flower Mart Project is the largest of the proposed office
and retail projects planned for the Central SoMa neighborhood. In
addition to funding the construction of a new, 115,000-square-foot
wholesale flower market, the project will include most of the new
neighborhood-serving retail in Central SoMa, dedicate a site to the
City for 100% affordable housing, create thousands of good
construction and other jobs, and deliver unprecedented community
and economic benefits to the City, including hundreds of millions
of dollars in development impact fees and new tax revenues.
The revised project is the product of more than five years of
negotiations and partnership between Kilroy Realty, the wholesale
flower vendor community, and the City. Key elected leaders have
provided consistent guidance and support throughout the project
development, especially Supervisor Aaron Peskin, Supervisor Matt
Haney, Mayor London Breed, former Supervisor Jane Kim, former Mayor
Art Agnos, and the late Mayor Ed Lee.
The Flower Mart Project’s extensive community and economic
public benefits are projected to include:
- $39.2 million in direct annual tax revenue for the City/County
of San Francisco
- $175.2 million in direct, one-time construction-related revenue
for the City
- $166 million in fees, including $54 million for affordable
housing and $49 million for transportation
- $9.2 million in gross receipts and sales tax revenue
- $20 million construction of new wholesale flower market
- 8,050 annual construction-related jobs, with economic output
totaling $1.5 billion during the construction period
(2020-2023)
- $5 million to support the Sunnydale public housing
transformation under HOPE-SF
- 115,000 square feet of affordable Production, Distribution,
Repair (PDR) space
- 100,000 square feet of neighborhood-serving retail and market
hall
- 14,000+ square-foot, off-site land dedication to Mayor’s Office
of Housing for 100% affordable housing (up to 100+ units)
- 22,000 square-foot child care center (or in-lieu fee)
- 36,000 square feet of on-site privately-owned public open
space
- 5,000 square feet off-site public open space
- 1,000 square-foot community room for use by neighborhood
organizations
- LEED Platinum certification
- $4 million in public art
The full Planning Commission package for the San Francisco
Flower Mart project is available at
http://commissions.sfplanning.org/cpcpackets/2017-000663ENXOFAPCADVA.pdf.
About Kilroy Realty Corporation. Kilroy Realty
Corporation (KRC), a publicly traded real estate investment trust
and member of the S&P MidCap 400 Index, is one of the West
Coast’s premier landlords. The company has over 70 years of
experience developing, acquiring and managing office and mixed-use
real estate assets. 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, 2019, the company’s stabilized portfolio totaled
approximately 13.2 million square feet of office space located in
the coastal regions of Los Angeles, Orange County, San Diego, the
San Francisco Bay Area and Greater Seattle and 200 residential
units located in the Hollywood submarket of Los Angeles. The
stabilized portfolio was 92.5% occupied and 96.2% leased. In
addition, KRC had under construction five projects totaling
approximately 2.1 million square feet of office space that was 26%
leased and 801 residential units. KRC also had three projects in
the tenant improvement phase totaling approximately 1.2 million
square feet of office, PDR and retail space of which the office
components of the projects are fully leased to Adobe and
Dropbox.
The company’s commitment and leadership position in
sustainability has been recognized by various industry groups
across the world. In September 2018, the company was recognized by
GRESB both as North American leader across all asset classes and a
global leader among all publicly traded real estate companies.
Other sustainability accolades include NAREIT’s Leader in the Light
award for the past five years, the EPA’s highest honor of Sustained
Excellence and winner of ENERGY STAR Partner of the Year for the
past six years. The company is listed in the Dow Jones
Sustainability World Index. At the end of the first quarter, the
company’s stabilized portfolio was 63% LEED certified and 76% of
eligible properties were ENERGY STAR certified. 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 or implied in the forward-looking
statements, and you should not rely on the 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 the
forward-looking statements, including, among others: 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; risks associated with our
investment in real estate assets, which are illiquid, and with
trends in the real estate industry; defaults on or non-renewal of
leases by tenants; any significant downturn in tenants’ businesses;
our ability to re-lease property at or above current market rates;
costs to comply with government regulations, including
environmental remediation; 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; 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, and which may result in write-offs or
impairment charges; 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 enactment or
implementations of, tax laws or other applicable laws, regulations
or legislation, as well as business and consumer reactions to such
changes; 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 and additional factors could
adversely affect our business and financial performance. 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, 2018 and our other
filings with the Securities and Exchange Commission. All
forward-looking statements are based on currently available
information, and speak only as of the dates 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 we are required to do so in connection with our ongoing
requirements under federal securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20190715005827/en/
Mike Grisso Senior Vice President Development and Land Planning
(415) 778-7777
Kilroy Realty (NYSE:KRC)
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