Kilroy Realty Acquires San Diego Office Campus
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LOS ANGELES--(BUSINESS WIRE)--Dec. 29, 2004--Kilroy Realty Corporation (NYSE:KRC) announced today it has purchased the Legacy Sabre Springs office campus located at the intersection of Interstate 15 and State Route 56 in San Diego, California. The project was purchased from a joint venture between Legacy Partners and VEF Advisors. The purchase price was $98 million.
The office campus, renamed Kilroy Sabre Springs, includes two new six-story, Class "A" office buildings totaling approximately 281,800 square feet and an adjacent, fully-entitled development site that would allow the company to build a third six-story office building that will total approximately 149,000 square feet.
The acquisition strategically expands the company's significant market position on the SR-56 corridor with two new high-quality, 90% leased multi-tenant office buildings, and further diversifies its San Diego tenant base to include Intel Corporation, Nokia Inc., Chase Manhattan Automotive Finance and Bank of America. In addition, the company can utilize its development expertise to build a third six-story multi-tenant office building over time. Kilroy Sabre Springs is the last available, freeway-fronting, Class "A" office project with development rights in the five million square foot I-15/Sabre Springs submarket.
"The Kilroy Sabre Springs acquisition is the next step in our strategy to increase KRC's leading market position in the northern San Diego office markets, which are among the strongest in the country," said John B. Kilroy, Jr., president and CEO of Kilroy Realty Corporation. "The development component fits exactly with our value-added approach to use our development experience to enhance the project's overall return," he added.
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. Although Kilroy Realty Corporation believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that its expectations will be achieved. Certain factors that could cause actual results to differ materially from Kilroy Realty's expectations 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, including changes in the economic conditions affecting industries in which its principal tenants compete; Kilroy Realty's ability to timely lease or re-lease space at current or anticipated rents; changes in interest rates; changes in operating costs, including utility costs; fluctuations in the company's share price and the resulting impact on general and administrative costs, future demand for its debt and equity securities; its ability to refinance its debt on reasonable terms at maturity; its ability to complete current and future development projects on schedule and on budget; the demand for office space in markets in which Kilroy Realty has a presence; 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. Many of these factors are beyond Kilroy Realty's ability to control or predict. Forward-looking statements are not guarantees of 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 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. KRC is currently active in office development and redevelopment in Los Angeles and San Diego counties. At September 30, 2004, the company owned 7.4 million square feet of commercial office space and 4.6 million square feet of industrial space. More information is available at www.kilroyrealty.com.