West Coast Real Estate Investment Trust Has Also Inked Commitments
That Now Cover 80% of New Office Space at Its Columbia Square
Development in Hollywood
LOS ANGELES--(BUSINESS WIRE)--
Kilroy Realty Corporation(NYSE: KRC) announced today that
it stabilized two San Francisco office development projects totaling
641,000 square feet and signed letters of intent for an additional
83,000 square feet at its mixed-used Columbia Square development in
Hollywood that increased the committed portion of the project’s office
space to 80%.
The two San Francisco properties include 350 Mission Street, a 30-story
glass and concrete office tower leased to salesforce.com, inc. located
immediately across from the city’s new Transbay Transit Center, and 333
Brannan Street, a six-story brick and concrete building leased to
Dropbox, Inc. located in the eastern end of the SOMA district. The two
properties have been in development since 2012 and 2013, respectively,
with 350 Mission Street being the first high-rise LEED Platinum
ground-up development constructed in San Francisco. The aggregate
investment for 350 Mission Street and 333 Brannan Street is
approximately $381 million.
KRC’s Columbia Square project is a $461 million mixed-use, LEED Gold
development in the heart of Hollywood that encompasses three phases
totaling 685,000 square feet of office, retail and residential space
along with a five-level subterranean parking structure. Phase 1 consists
of the redevelopment of the original William Lescaze-designed radio and
business buildings encompassing 110,000 square feet, which was built in
1938 as the first West Coast home of the Columbia Broadcasting System.
The two buildings are fully occupied by NeueHouse, a private workspace
collective, and were stabilized in 2015. Phases 2 and 3 consist of
370,000 square feet of newly developed office space and a residential
tower consisting of 200 furnished and unfurnished units.
KRC completed Phase 2, the newly constructed office space, during the
first quarter and executed leases in 2014 and 2015 with Viacom and
Fender Music to take just under 215,000 square feet of space with
occupancy projected for later this year. During the first quarter of
2016, the company signed letters of intent covering an additional 83,000
square feet of office space, increasing to 85% the commercial office
portion of the project now leased or committed.
“For several years now, West Coast commercial real estate markets have
been among the strongest performers in the nation,” said John Kilroy,
KRC’s chairman, president and chief executive officer, “and our recent
experience suggests that well-located, high quality contemporary office
space remains in high demand.”
About Kilroy Realty Corporation. With almost 70 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 March 31, 2016, the company’s stabilized portfolio totaled
13.7 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, ranking first among
155 North American participants across all asset types. At the end of
the first quarter, the company’s properties were 46% LEED certified and
66% of eligible properties were ENERGY STAR certified. In addition, KRC
had approximately 905,000 square feet of office and residential projects
under construction with a total estimated investment of approximately
$645.0 million. 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/20160427006795/en/
Kilroy Realty Corporation
Tyler H. Rose
Executive Vice
President
and Chief Financial Officer
(310) 481-8484
or
Michelle
Ngo
Senior Vice President
and Treasurer
(310) 481-8581
Source: Kilroy Realty Corporation