(EDITOR’S NOTE: According to industry reporting, Stripe is the second-most valuable private start-up in the United States and is valued at $35 billion. The firm, which noted that its move to a new location was partially due to space constraints in San Francisco, plans to transfer around 1,000 employees to Oyster Point upon Phase I’s completion.)
LOS ANGELES — Kilroy Realty Corporation today said it has executed a 12-year lease with Stripe, Inc. for approximately 421,000 square feet of space at Phase I of the company’s approximately 656,000 square foot South San Francisco development project (“Kilroy Oyster Point”). Phase I is now 100% leased and, with this transaction, the office and life science component of the company’s $2.2 billion of projects under construction is now 81% leased.
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 that are situated at the entrance to the 2.5 million square foot project and are expected to be completed in the second half of 2021.
“We are thrilled at the leasing success we’ve achieved at this project. We fully leased the project just two quarters after commencing construction. This pace speaks to the continued strength we’re seeing across our West Coast markets, where demand remains strong and supply is extremely limited,” said John Kilroy, KRC’s chairman and chief executive officer.
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.
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 September 30, 2019, the company’s stabilized portfolio totaled approximately 13.3 million square feet of office space located in the coastal regions of Los Angeles, 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 92.1% occupied and 97.3% leased. In addition, KRC had six projects totaling approximately 2.3 million square feet of office and life science space that were 63% leased and 564 residential units under construction. KRC also completed 237 residential units, with a third of the units leased, and 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 100% leased.
The company’s commitment and leadership position in sustainability has been recognized by various industry groups across the world. In September 2019, the company was recognized by GRESB as the sustainability leader in the Americas across all asset classes for the fifth time. Other sustainability accolades include NAREIT’s Leader in the Light award for the past five years and the EPA’s highest honor of ENERGY STAR Partner of the Year Sustained Excellence award for the past four years. The company is listed in the Dow Jones Sustainability World Index. At the end of the third quarter, the company’s stabilized portfolio was 61% LEED certified and 72% of eligible properties were ENERGY STAR certified.