Kilroy Realty Continues Expansion of Development Pipeline with Acquisition of San Diego Land and Building; Signs Lease for 303,000 Square Feet with Information Technology Company
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LOS ANGELES, Sep 30, 2005 (BUSINESS WIRE) -- Kilroy Realty Corporation (NYSE:KRC) announced today it has purchased a fully-entitled 20 acre land site, which includes a 303,000 square foot office, engineering and manufacturing building, along the I-15 corridor in the Rancho Bernardo submarket of San Diego, California. The purchase price was $24 million.
The property was purchased from a worldwide information technology company, which currently occupies the existing 303,000 square foot building and has entered into a one-year lease with Kilroy Realty to occupy the property through September 2006. The lease also includes a three-month extension option. At the termination of the lease, Kilroy Realty will completely redevelop the site and currently anticipates developing approximately 600,000 to one million square feet of office space in phases. The site includes entitlements to build approximately 1.8 million square feet of office and light industrial space.
The acquisition continues Kilroy Realty's growth along the I-15 corridor and adds to the company's significant development pipeline in San Diego, which now includes the potential to build over 1.7 million square feet of office space in addition to the 644,000 square feet currently under construction and 84% preleased at the company's Innovation Corporate Center and Santa Fe Summit campuses.
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, current 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 June 30, 2005, the company owned 7.6 million square feet of commercial office space and 4.4 million square feet of industrial space. More information is available at www.kilroyrealty.com.
SOURCE: Kilroy Realty Corporation
Kilroy Realty Corporation