LOS ANGELES–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.