LOS ANGELES--(BUSINESS WIRE)--
Kilroy Realty Corporation (KRC) today said it has completed a $95 million acquisition of a high-identity, 3.1 acre, fully entitled development site in San Francisco’s Mission Bay neighborhood, one of the city’s newest and fastest growing residential, job and entertainment centers, situated just south of the SOMA district along the San Francisco Bay.
“Mission Bay is fast becoming San Francisco’s most popular new live-work-play neighborhood,” said John Kilroy, Jr, the company’s chairman, president and chief executive officer. “Its compelling, Bay-front location and its diverse mix of residential, commercial, academic and entertainment venues have produced a unique community environment that is now electrifying interest across a range of organizations. We believe our Kilroy Mission Bay office campus responds to a shortage of the collaborative space that is most in demand in San Francisco and will quickly attract many of the city’s most dynamic companies and their young, urban-oriented workers.”
KRC’s development site is located at the southwestern edge of Mission Bay directly adjacent to the 280 Freeway and along the 16th Street Corridor, the primary arterial that connects Mission Bay to the immediately adjoining residential neighborhoods of Potrero Hill, the Mission District and Dogpatch, all popular with the city’s young population of technology workers. Well-connected to surrounding neighborhoods and the greater Bay Area by highway, public transit and bicycle paths, Mission Bay is attracting a growing array of retail and entertainment amenities. It is immediately adjacent to AT&T Park, home of the San Francisco Giants, and has been selected by the Golden State Warriors as the location for the basketball team’s new 18,000-seat arena. The site has shuttle services to Caltrain and BART, and is within walking distance of the new Central Subway line slated for completion later this decade.
KRC said it will invest approximately $450 million, including the land purchase, in the development of a 680,000 square-foot, mid-rise office campus that can be built in two phases, with the first phase of construction expected to begin in early 2015. The LEED-Gold designed project will include two six-story and two 12-story office buildings featuring large floor plates with high ceilings, abundant natural light and views of San Francisco Bay. The project design also includes numerous outdoor decks and other gathering places that foster communication and collaboration among today’s millennial workforce.
Once the site of a major rail yard for the Southern Pacific Railroad, Mission Bay has developed over the last two decades into a highly desirable, mixed-use urban neighborhood. In addition to the new campus of the University of California, San Francisco, UCSF Mission Bay, the neighborhood will be home to more than 6,000 individual residences, 4.4 million square feet of office, research and biotechnology facilities and 280,000 square feet of retail amenities upon completion of projects that are currently under construction or planned.
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 serve a roster of dynamic, innovation-driven tenants, including technology, entertainment, digital media and health care companies.
At March 31, 2014, the company’s stabilized portfolio totaled 13.3 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. 41% of the company’s properties were LEED certified and 55% of the eligible properties were ENERGY STAR certified. In addition, KRC has approximately 2.5 million square feet of new office development under construction with a total estimated investment of approximately $1.5 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, 2013 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.
- Mission Bay
- San Francisco
- San Francisco Bay
- San Francisco Giants
- Bay Area
Tyler H. Rose
Executive Vice President and Chief Financial Officer
Senior Vice President and Treasurer