Kilroy Realty Expands San Diego Development Pipeline with Acquisition of Land Site Adjacent to Santa Fe Summit
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LOS ANGELES, Jun 02, 2005 (BUSINESS WIRE) -- Kilroy Realty Corporation (NYSE:KRC) announced today it has purchased a fully-entitled 11 acre land site along the new State Route 56 freeway in San Diego, California. The purchase price was $24 million.
The land site, to be named Santa Fe Summit - Phase II, includes entitlements to build approximately 350,000 rentable square feet of office space and is immediately adjacent to the company's previously announced Santa Fe Summit - Phase I project that will include approximately 466,000 rentable square feet of office space in four, four-story office buildings. Phase I is 78% preleased to Intuit, Inc.
The acquisition continues the company's strategic expansion along the SR-56 corridor and adds to the company's significant development pipeline in San Diego that now includes the potential to build approximately 1.7 million square feet of office space, including a total of over 800,000 square feet in both phases of the master-planned Santa Fe Summit project. "The Santa Fe Summit - Phase II acquisition continues the growth of KRC's leading development franchise in the northern San Diego office markets," said John B. Kilroy, Jr., president and CEO of Kilroy Realty Corporation. "This site provides KRC with another opportunity to deliver superior risk-adjusted returns to our shareholders," 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 March 31, 2005, the company owned 7.6 million square feet of commercial office space and 4.5 million square feet of industrial space. More information is available at www.kilroyrealty.com.
SOURCE: Kilroy Realty Corporation
Kilroy Realty Corporation