LOS ANGELES--(BUSINESS WIRE)--
Kilroy Realty Corporation(NYSE:KRC) today said it has
completed the acquisition of an approximately 1.75 acre site at the
corner of 5th and Brannan Streets, immediately adjacent to
The Flower Mart development site the company currently owns in the heart
of San Francisco’s South of Market (“SoMa”) neighborhood. KRC purchased
the site from a private family for approximately $31 million in cash and
867,701 Kilroy Realty, L.P. operating partnership units.
KRC now owns a total of approximately seven acres on Brannan Street
between 5th and 6th Streets, with the addition of
the newly acquired site. The company has been working on the land
assemblage for several years and completed the acquisition of the first
parcel in late 2014.
Upon city approval, the company plans to develop a world class office,
retail and flower mart project, including approximately 2.1 million
square feet of office and retail space. Plans for the project include a
dynamic mix of creative office, market hall style retail and wholesale
flower mart surrounded by a central public plaza that embodies the rich
urban history of the area. The site has been and will continue to be the
home to a thriving wholesale flower market that will be redeveloped into
a modern, state-of-the-art facility, which will provide an anchor for
the company’s development plans.
The project represents one of the largest remaining commercial
development opportunities in the city’s downtown area. It is located
just one block from the 4th and Brannan stop of the future Central
Subway. The newly acquired site, with its corner location, will add
significant market presence to the already well-located project.
About Kilroy Realty Corporation
With more than 65 years’ experience owning, developing, acquiring and
managing real estate assets in West Coast real estate markets, Kilroy
Realty Corporation (KRC), a publicly traded real estate investment trust
and member of the S&P MidCap 400 Index, is one of the region’s premier
landlords. The company provides physical work environments that foster
creativity and productivity and serves a broad roster of dynamic,
innovation-driven tenants, including technology, entertainment, digital
media and health care companies.
At December 31, 2015, the company’s stabilized portfolio totaled
13.0 million square feet of office properties, all located in the
coastal regions of greater Seattle, the San Francisco Bay Area, Los
Angeles, Orange County and San Diego. The company is recognized by GRESB
as the North American leader in sustainability and was ranked first
among 155 North American participants across all asset types. At the end
of the fourth quarter, the company’s properties were 47% LEED certified
and 64% of eligible properties were ENERGY STAR certified. In addition,
KRC had approximately 1.9 million square feet of office and mixed-use
development under construction with a total estimated investment of
approximately $1.2 billion. More information is available at http://www.kilroyrealty.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are based on our current expectations,
beliefs and assumptions, and are not guarantees of future performance.
Forward-looking statements are inherently subject to uncertainties,
risks, changes in circumstances, trends and factors that are difficult
to predict, many of which are outside of our control. Accordingly,
actual performance, results and events may vary materially from those
indicated in forward-looking statements, and you should not rely on
forward-looking statements as predictions of future performance, results
or events. Numerous factors could cause actual future performance,
results and events to differ materially from those indicated in
forward-looking statements, including, among others, risks associated
with: investment in real estate assets, which are illiquid; trends in
the real estate industry; significant competition, which may decrease
the occupancy and rental rates of properties; the ability to
successfully complete acquisitions and dispositions on announced terms;
the ability to successfully operate acquired properties; the
availability of cash for distribution and debt service and exposure of
risk of default under debt obligations; adverse changes to, or
implementations of, applicable laws, regulations or legislation; and the
ability to successfully complete development and redevelopment projects
on schedule and within budgeted amounts. These factors are not
exhaustive. For a discussion of additional factors that could materially
adversely affect our business and financial performance, see the factors
included under the caption “Risk Factors” in our annual report on
Form 10-K for the year ended December 31, 2015 and our other filings
with the Securities and Exchange Commission. All forward-looking
statements are based on information that was available, and speak only
as of the date on which they are made. We assume no obligation to update
any forward-looking statement made in this press release that becomes
untrue because of subsequent events, new information or otherwise,
except to the extent required in connection with ongoing requirements
under U.S. securities laws.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160314005258/en/
Kilroy Realty Corporation
Tyler H. Rose
Executive Vice
President
and Chief Financial Officer
310-481-8484
or
Michael
L. Sanford
Executive Vice President,
Northern California
415-778-5678
Source: Kilroy Realty Corporation