Kilroy Realty Announces Acquisition of San Francisco Office Building
|View printer-friendly version|
LOS ANGELES, Sep 20, 2011 (BUSINESS WIRE) -- Kilroy Realty Corporation (NYSE: KRC), continuing its strategy of acquiring high-quality, well-located properties at below replacement cost prices, announced today that it has purchased 201 Third Street in the South of Market district of San Francisco for approximately $103.3 million. The 311,545 square-foot, 12-story office property is adjacent to the Moscone Center and is currently 90% occupied. The company plans to complete upgrades to the project over time which are expected to enhance the property's profile in this dynamic commercial district.
"With its prime SOMA location, adjacency to the Moscone Center, proximity to Caltrain, BART and the new Transbay Transit Center and larger floor plates, 201 Third Street is a great fit for the technology and media tenants who see San Francisco as an ideal business location," said Mike Sanford, Vice President - Northern California. "The property highlights one of KRC's key strategies of skillfully repositioning the property's common areas, amenities and tenant spaces - creating more open floor plans, higher finished ceilings, increased natural light and collaborative meeting areas - which will better accommodate SOMA's knowledge-based tenant demand."
Including this acquisition, year-to-date Kilroy Realty has acquired six West Coast office projects totaling approximately 1.5 million square feet for an aggregate investment of approximately $516 million. In addition, the company is in various stages of negotiations on three additional acquisitions that would total approximately $163 million.
The company also announced that it has closed on the sale of 10350 Barnes Canyon and 10120 Pacific Heights, a one-story office/R&D complex in San Diego, for $24 million and is in discussions on approximately $175 million of additional dispositions.
Some of the information presented in this release is forward-looking in nature within the meaning of the Private Securities Litigation Reform Act of 1995. Certain factors that could cause the expectations to differ are set forth as risk factors in the company's Securities and Exchange Commission reports and filings. Included among these factors are changes in general economic conditions, future demand for its debt and equity securities, its ability to refinance its debt on reasonable terms at maturity, its ability to complete potential acquisitions and dispositions on the terms or by the dates currently contemplated, its ability to complete current and future development projects on schedule and on budget, and risks detailed from time to time in the company's Securities and Exchange Commission reports, including quarterly reports on Form 10-Q, current reports on Form 8-K and annual reports on Form 10-K. Many of these factors are beyond Kilroy Realty's ability to control or predict. Forward-looking statements are not guarantees of future performance. For forward-looking statements herein, Kilroy Realty claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Kilroy Realty Corporation, a member of the S&P Small Cap 600 Index, is a real estate investment trust active in premier office and industrial submarkets along the West Coast. For over 60 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of Los Angeles, Orange County, San Diego, greater Seattle and the San Francisco Bay Area. At June 30, 2011, the company owned 11.5 million rentable square feet of commercial office space and 3.6 million rentable square feet of industrial space. More information is available at http://www.kilroyrealty.com/.
SOURCE: Kilroy Realty Corporation
Kilroy Realty Corporation