Peregrine Systems Signs Largest Office Lease in San Diego History For World Headquarters at Kilroy Realty's Del Mar Project
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SAN DIEGO, July 12 /PRNewswire/ -- Kilroy Realty Corporation (NYSE: KRC) and Peregrine Systems (Nasdaq: PRGN) announced that Peregrine Systems, the global leader in infrastructure management software, has signed a lease for 420,000 square feet for a new world headquarters in the Del Mar area of San Diego. Kilroy Realty, the largest active developer in the San Diego market, is developing the project. The lease is the largest single office lease transaction in the history of San Diego County and is valued at more than $175 million.
"Kilroy Realty is creating the premier office campus in San Diego that will be a superb visual communication of our brand," said Steve Gardner, President and CEO of Peregrine Systems who noted that the campus will be named Peregrine Systems Corporate Center. "We are very pleased to be moving here.
"Our workplace environment is critical to fostering communication, collaboration and innovation," he added. "With its well landscaped public spaces, its informal meeting areas and its advanced technology connections, Peregrine Systems Corporate Center is ideally suited for us. Moreover, the campus offers us the flexibility that we need for future growth."
"Peregrine Systems is a great example of the fast growing, knowledge-based companies that are fueling Southern California's economy," said John B. Kilroy, Jr., president and chief executive officer of Kilroy Realty Corporation. "Our business focus is aimed squarely at creating workplace environments in the most desirable submarkets that provide these companies what they need to attract and retain topflight staff."
Located at the northeast quadrant of Interstate 5 and SR 56, Peregrine Systems Corporate Center will be the largest master planned office campus in Del Mar with 540,000 square feet in five buildings. Peregrine Systems will occupy four of these buildings and has taken an option for the fifth building that comprises an additional 120,000 square feet. All of the buildings will be equipped with a fiber optics cable system for high-speed Internet access for voice, video, data and multimedia communications.
Gardner said another reason for selecting Kilroy's Del Mar project was that the location is close to the existing Peregrine Systems facilities which will minimize impact on employee commuting time. In addition, the range of nearby amenities including a 219-room Doubletree Hotel and one of Del Mar's premier neighborhood centers with numerous restaurants, retail and convenience shops, was attractive.
"Peregrine Systems is a great example of the leading technology company that we had in mind when we designed this campus," said Steve Scott, Senior Vice President, Kilroy Realty -- San Diego. He points out that the center's "sleek and elegant" architecture by Carrier Johnson of San Diego reflects the image sought by high technology companies and the large floorplates offer the efficiency and flexibility these companies require. Further, Peregrine Systems Corporate Center is unified by three large courtyards with water features that connect the five buildings. These provide attractive public areas for employees and visitors and serve as informal gathering places.
"Research shows that shared spaces are absolutely essential to enhancing communications and strengthening the cultures of technology and other creative companies," Scott reports, noting that all Peregrine Systems Corporate Center buildings are accessible to and from one another through ground floor, double-entry "through" lobbies. One building has a third-floor deck with views of the Torrey Reserve and Torrey Pines Ridge.
Construction is now underway on a three-story, 53,000-square-foot building, a five-story, 134,000-square-foot building and a two-level, 1,730-space parking garage. With the Peregrine Systems lease in hand, Kilroy has moved up the construction schedule on the additional three buildings, according to Randy Jackson, Kilroy Realty Project Manager for Peregrine Systems Corporate Center.
Phil Monroe and Patrick Rohan of John Burnham & Company are leasing agents for Kilroy's Peregrine Systems Corporate Center. They co-represented Peregrine Systems along with Laura O'Brien of CB Richard Ellis. The general contractor is Reno Contracting, Inc. of San Diego.
About Peregrine Systems:
Peregrine Systems is the leading provider of Infrastructure Management solutions through software that generates common shared data to address all aspects of organizational infrastructure from information technology, including both computers and telecommunications, to the buildings housing an organization's technology and people. Even transportation fleets can be managed using Peregrine Systems applications. Peregrine Systems software is designed to permit customers to maximize the effectiveness of their infrastructure assets while driving down their total cost and improving overall productivity.
Founded in 1981, Peregrine Systems is headquartered in San Diego, California, with offices throughout the United States as well as in the United Kingdom, Canada, France, Germany, Denmark, Italy, Japan, Netherlands, Sweden, Australia, and Singapore. With over 2,500 customers in over 40 countries, Peregrine Systems also has partners and distributors located throughout these regions and in Latin America. More information on Peregrine Systems is available on the World Wide Web at http://www.peregrine.com.
About Kilroy Realty Corporation
Kilroy Realty Corporation is a Southern California-based real estate investment trust active in the commercial office and industrial property sectors. Principal submarkets for the company's development projects include Los Angeles, San Diego, Long Beach and Orange County, where the company has a development pipeline exceeding $500 million. At March 31, 1999, the company owned 5.7 million square feet of commercial office space and 6.2 million square feet of industrial space. More information on Kilroy Realty can be found at www.kilroyrealty.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Kilroy Realty Corp.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
SOURCE Kilroy Realty Corporation