DIRECTV Renews and Expands Headquarters Lease at Kilroy Airport Center; 180,000 Square Foot Lease Commitment Largest in El Segundo in Five Years
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LOS ANGELES, Aug. 22, 2001 -- Kilroy Realty Corporation (NYSE:KRC) today said that DIRECTV, Inc., the leading digital satellite entertainment service in the United States, has signed a new seven-year lease valued at approximately $56 million that will expand its El Segundo headquarters at Kilroy Airport Center.
The new lease covers 182,473 square feet in two buildings at Kilroy Airport Center. It gives DIRECTV over 10 floors in the 2250 E. Imperial Highway building and an additional one half floor in the adjacent 2240 E. Imperial Highway building. DIRECTV has also obtained prestigious signage rights on the 2250 building, providing visibility to the 65 million passengers of Los Angeles International Airport annually, and the 500,000 vehicles traveling the 105 Freeway weekly.
"This is great news for Kilroy Realty Corporation and the City of El Segundo," said John B. Kilroy, Jr., president and CEO of Kilroy Realty. "It continues to underscore the attractiveness of El Segundo as a corporate headquarters location for major Southern California-based companies, such as Hughes, Mattel, Computer Sciences and many others. Kilroy has been active in El Segundo for over 50 years, and within a few blocks of this campus, we're completely renovating a 135,000-square-foot building which will capture the on-going demand in the El Segundo marketplace," he added.
Kilroy Airport Center consists of 1.3 million square feet of Class A office space set on 11.5 acres immediately adjacent to the Los Angeles International Airport. Kilroy Realty owns the 2240 and 2250 E. Imperial Highway buildings as well as the 2260 E. Imperial Highway building that were all completed in 1983 as phase two of this multi-building campus.
Representing DIRECTV was Nancy Hall of Hughes Electronics, DIRECTV's parent company along with Grafton Tanquary of CB Richard Ellis. Pat Ramsey of Paul, Hastings, Janovsky & Walker was also on the team.
Kilroy Realty was represented by Kathy M. Delgado, KRC's senior vice president for leasing, along with Anton N. Natsis and Delmar L. Nehrenberg of Allen Matkins Leck Gamble & Mallory.
Some of the information presented in this release is forward-looking in nature within the meaning of the federal securities law. Although the information is based on the company's current best judgment, actual results, including the timing and total investment of the company's development projects, and the timely leasing or re-leasing of space at current or anticipated rents, could vary from expectations stated here. Numerous factors will affect the company's actual results, some of which are beyond the company's control. These include the timing and strength of regional economic growth, the strength of commercial and industrial real estate markets, competitive market conditions, future interest rate levels, capital market conditions and risks detailed from time to time in the company's SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K.
Kilroy Realty Corporation is a Southern California-based real estate investment trust active in the office and industrial property sectors. For more than 50 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of California and Washington. Principal submarkets for the company's current development program include Calabasas, West Los Angeles, El Segundo and coastal San Diego, where the company's total development pipeline is approximately $500 million. At June 30, 2001, the company owned 7.2 million square feet of commercial office space and 5.6 million square feet of industrial space. More information on Kilroy Realty can be found at www.kilroyrealty.com.
-0- CONTACT: Kilroy Realty Corp., Los Angeles Investor Contact: Tyler Rose, Senior Vice President and Treasurer (310) 563-5531 Media Contact: Casey, Sayre & Williams, Inc. Karen Diehl (310) 458-1224