Cytokinetics Signs 12-Year Lease for Approximately 235,000 Square Feet of Phase I at Kilroy Oyster Point
LOS ANGELES (July 24, 2019) – Kilroy Realty Corporation (NYSE: KRC) today said it has executed an approximately 235,000 square foot, 12-year lease at its South San Francisco development project (“Kilroy Oyster Point”), just four months after construction commencement, with Cytokinetics (NASDAQ: CYTK).
KRC acquired the approximately 40-acre, fully entitled, waterfront site in June of 2018 and started construction on the first of four phases in March 2019. Phase I consists of three state-of-the-art laboratory and office buildings, an amenity-activated plaza complete with a bleacher style amphitheater, a full service restaurant and bar, and a fitness center. The three buildings are situated at the entrance to the 2.5 million square foot project, are within walking distance to the ferry terminal and are visible from Highway 101. Kilroy Oyster Point Phase I is expected to be delivered in the second half of 2021.
“This is the earliest leasing, prior to delivery, in South San Francisco’s recent history, further demonstrating the strength and velocity of the South San Francisco market,” said John Kilroy, KRC’s chairman and chief executive officer. “The decision by another biotech company to move into the burgeoning Oyster Point Boulevard corridor reflects the attraction of well-located, highly amenitized, best-in-class facilities like Kilroy Oyster Point.”
Phase I was designed by DGA Architects and will be designated LEED Gold. Ongoing infrastructure work, including all new streets, bay trail improvements, pedestrian lanes, sidewalks and utilities are being constructed by Teichert Construction. Phase I is being constructed by Hathaway Dinwiddie Construction. Gregg Domanico of Kidder Matthews represented Cytokinetics.About Kilroy Realty Corporation
Kilroy Realty Corporation (KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is one of the West Coast’s premier landlords. The company has over 70 years of experience developing, acquiring and managing office and mixed-use real estate assets. 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 June 30, 2019, the company’s stabilized portfolio totaled approximately 13.5 million square feet of office space located in the coastal regions of Los Angeles, Orange County, San Diego, the San Francisco Bay Area and Greater Seattle and 200 residential units located in the Hollywood submarket of Los Angeles. The stabilized portfolio was 93.8% occupied and 97.2% leased. In addition, KRC had five projects under construction totaling approximately 2.1 million square feet of office space that were 55% leased and 801 residential units. KRC also had two projects in the tenant improvement phase, The Exchange on 16th, totaling approximately 750,000 square feet, with the office space fully leased to Dropbox, and 96,000 square feet of retail at One Paseo, which was 94% leased.
The company’s commitment and leadership position in sustainability has been recognized by various industry groups across the world. In September 2018, the company was recognized by GRESB both as North American leader across all asset classes and a global leader among all publicly traded real estate companies. Other sustainability accolades include NAREIT’s Leader in the Light award for the past five years, the EPA’s highest honor of Sustained Excellence and winner of ENERGY STAR Partner of the Year for the past six years. The company is listed in the Dow Jones Sustainability World Index. At the end of the second quarter, the company’s stabilized portfolio was 59% LEED certified and 75% of eligible properties were ENERGY STAR certified. More information is available at http://www.kilroyrealty.com.