Kilroy Realty Corporation Signs 68,000-Square-Foot Lease With Ericsson
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LOS ANGELES, Jan. 24, 2001 -- Kilroy Realty Corporation (NYSE:KRC), one of the region's most active developers and owners of office campuses, has signed a seven-year lease with Ericsson, the world's leading telecommunications supplier, for 68,000 square feet. The two-story, Class A office building is located at 5717 Pacific Center Boulevard, directly across from Ericsson's CDMA Systems Business Unit headquarters in Sorrento Mesa.
"Kilroy's strength is in designing and building a quality product that is flexible, efficient and can accommodate a wide array of users such as Ericsson," says Steve Scott, senior vice president of Kilroy Realty. "This was evidenced during construction. We had a number of prospective tenants from various industries and of varied sizes, and we focused on strong, well established companies with a leadership role within their industries."
Reno Contracting finished core and shell construction in December, and Johnson and Jennings will complete the interior build-out by April 2001. PCA is the building architect, and IR2 designed the interiors, which will eventually house 275 Ericsson employees. Brian Driscoll and Eric Northbrook of Colliers represented Kilroy in the transaction and Tom Maloney of Cushman Realty represented Ericsson.
"The Sorrento Mesa market remains very strong with a 95 percent occupancy, with no new speculative development of campus-style office buildings and continued strong demand for this type of product," Scott notes. "We started construction on this phase of Pacific Technology Center without a tenant commitment but leased the building at a higher rate and faster than we expected to a topflight multinational company."
A leading owner/operator and developer of R&D and office space for innovative companies that have proven their ability in the marketplace, Kilroy Realty has completed build-to-suit facilities in San Diego for numerous companies, including Applied Micro Circuits Corp., Peregrine Systems, biotech leader Diversa Corp. and the fast-growing law firm of Brobeck, Phleger & Harrison, LLP. The company has more than 2.5 million square feet completed and 100 percent occupied in San Diego alone, located in the most sought after sub-markets of Sorrento Mesa, University Town Center, Del Mar and Carmel Mountain Ranch.
Kilroy Realty Corporation is a real estate investment trust that focuses on the commercial office and industrial property sectors in the coastal corridor of Southern California. The company has a current development pipeline of approximately $500 million. At December 31, 2000, Kilroy Realty owned 6.6 million square feet of commercial office space and 5.8 million square feet of industrial space. More information can be found at www.kilroyrealty.com.
-0- CONTACT: Kilroy Realty Corporation, Los Angeles Tyler H. Rose, Senior Vice President and Treasurer (310) 563-5531