Kilroy Realty Signs 146,000 Square Foot Lease with Scripps Health for New Rancho Bernardo Building; New Building To Be Located Along I-15 Corridor At KRC's Innovation Corporate Center
|View printer-friendly version|
LOS ANGELES--(BUSINESS WIRE)--July 31, 2006--Kilroy Realty Corporation (NYSE:KRC) today said it has signed an 18.5-year lease agreement with Scripps Health for a new 146,000 rentable square foot six-story office building to be built at Innovation Corporate Center, a master-planned, eight-building, 616,000 rentable square foot office campus Kilroy Realty owns in the Rancho Bernardo submarket of San Diego, California. The total estimated investment in the new building is expected to be approximately $53 million.
Scripps Health, a not-for-profit, community-based health care delivery network in San Diego, is expected to take occupancy following completion of the building in the third quarter of 2008.
The planned development continues Kilroy Realty's growth in San Diego and adds to the company's committed San Diego development pipeline, which now totals over 1.1 million square feet and is 88% preleased.
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; 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. Kilroy Realty currently has an in-process development and redevelopment pipeline of approximately 1.3 million square feet in Los Angeles and San Diego counties. At June 30, 2006, the company owned 7.8 million rentable square feet of commercial office space and 4.4 million rentable square feet of industrial space. More information is available at www.kilroyrealty.com.
CONTACT: Kilroy Realty Corporation Richard E. Moran Jr., (310) 481-8483 Tyler H. Rose, (310) 481-8484 SOURCE: Kilroy Realty Corporation