Kilroy Realty Signs 365,000 Square Foot Lease with Intuit Inc. for New San Diego Regional Headquarters
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|New Four-Building Campus Located Along SR-56 Will Increase KRC's San Diego Office Portfolio by 13%|
LOS ANGELES, Mar 29, 2005 (BUSINESS WIRE) -- Kilroy Realty Corporation (NYSE:KRC) today said it has signed a 10-year lease agreement with Intuit Inc. (NASDAQ:INTU) for 365,000 rentable square feet at Santa Fe Summit, a new master-planned, four-building, 466,000 rentable square-foot office campus KRC plans to build on land it owns along the new State Route 56 freeway east of Del Mar in San Diego, California.
Intuit has agreed to lease three of the four buildings comprising 78% of the square footage planned for the new office campus and will take occupancy upon their completion in the fall of 2007. The agreement also provides Intuit with the option to expand its occupancy to include the fourth building. The software pioneer, a KRC tenant for more than seven years in San Diego and more recently in Calabasas, plans to use the new office campus as its regional headquarters. With the addition of Santa Fe Summit, KRC's San Diego portfolio will grow to more than four million square feet of office space, expanding the REIT's already significant presence in one of the strongest commercial real estate markets in the United States today.
Intuit's existing San Diego lease with KRC for 212,000 square feet in two buildings in the Governor Park submarket expires in 2007, and includes certain extension rights exercisable at Intuit's option.
Santa Fe Summit is located along the recently completed, 7.5-mile State Route 56 freeway that connects San Diego's two major north-south arteries - Interstate-5 and Interstate-15. SR-56 links San Diego County's growing residential communities and employment centers to the east with the major business submarkets of Del Mar, Sorrento Mesa and University Towne Center to the west. Kilroy Realty is the largest owner and developer of office properties in San Diego and holds a leading position along SR-56 with over 1.3 million square feet of existing space and land on which the company can build approximately 143,000 square feet of additional office space, in addition to the 466,000 square foot Santa Fe Summit project.
"Santa Fe Summit is an exciting addition to the tech-rich, campus-style office centers that have gained such immense popularity throughout San Diego and the rest of our portfolio," said John B. Kilroy, Jr., KRC's president and chief executive officer. "This project is a logical extension of the success we have had along the 56 Corridor in Del Mar and Sabre Springs," he said.
Santa Fe Summit's state-of-the-art, four-story, campus-style layout will be designed for both single and multi-tenant occupancies, and will accommodate the multiple space and technology needs of today's knowledge workers in a relaxed, communal setting. Each building will feature adaptable interior floorplates to maximize utility and flexibility as space needs change over time. Beautifully landscaped public areas will connect the four buildings via passageways, gardens and courtyards that are dotted with fountains and other water features.
Additional information regarding the development of Santa Fe Summit will be discussed on KRC's quarterly earnings call scheduled for Tuesday, April 26, 2005 at 11:00 a.m. PDT.
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 December 31, 2004, the company owned 7.7 million square feet of commercial office space and 4.6 million square feet of industrial space. More information is available at www.kilroyrealty.com.
SOURCE: Kilroy Realty Corporation
Kilroy Realty Corporation