Kilroy Realty Completes Disposition of 2211 Michelson
29 October 2019 - 7:08AM
Business Wire
Orange County Disposition Generates Gross
Proceeds of $116 Million
Kilroy Realty Corporation (NYSE: KRC) announced today that it
completed the disposition of 2211 Michelson located in the Irvine
submarket of Orange County for gross proceeds of approximately $116
million. 2211 Michelson was the company’s only building in Orange
County and this disposition, along with the sale of 2829 Townsgate
in March, completes the company’s 2019 capital recycling program,
totaling $134 million. The company will use the proceeds from the
sale to fund development, potential acquisitions and for other
general corporate purposes, including paying down debt.
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. 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 or implied in the forward-looking
statements, and you should not rely on the 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 the
forward-looking statements, including, among others: global market
and general economic conditions and their effect on our liquidity
and financial conditions and those of our tenants; adverse economic
or real estate conditions generally, and specifically, in the
States of California and Washington; risks associated with our
investment in real estate assets, which are illiquid, and with
trends in the real estate industry; defaults on or non-renewal of
leases by tenants; any significant downturn in tenants’ businesses;
our ability to re-lease property at or above current market rates;
costs to comply with government regulations, including
environmental remediation; the availability of cash for
distribution and debt service and exposure to risk of default under
debt obligations; increases in interest rates and our ability to
manage interest rate exposure; the availability of financing on
attractive terms or at all, which may adversely impact our future
interest expense and our ability to pursue development,
redevelopment and acquisition opportunities and refinance existing
debt; a decline in real estate asset valuations, which may limit
our ability to dispose of assets at attractive prices or obtain or
maintain debt financing, and which may result in write-offs or
impairment charges; significant competition, which may decrease the
occupancy and rental rates of properties; potential losses that may
not be covered by insurance; the ability to successfully complete
acquisitions and dispositions on announced terms; the ability to
successfully operate acquired, developed and redeveloped
properties; the ability to successfully complete development and
redevelopment projects on schedule and within budgeted amounts;
delays or refusals in obtaining all necessary zoning, land use and
other required entitlements, governmental permits and
authorizations for our development and redevelopment properties;
increases in anticipated capital expenditures, tenant improvement
and/or leasing costs; defaults on leases for land on which some of
our properties are located; adverse changes to, or enactment or
implementations of, tax laws or other applicable laws, regulations
or legislation, as well as business and consumer reactions to such
changes; risks associated with joint venture investments, including
our lack of sole decision-making authority, our reliance on
co-venturers’ financial condition and disputes between us and our
co-venturers; environmental uncertainties and risks related to
natural disasters; and our ability to maintain our status as a
REIT. These factors are not exhaustive and additional factors could
adversely affect our business and financial performance. 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, 2018 and our other
filings with the Securities and Exchange Commission. All
forward-looking statements are based on currently available
information and speak only as of the dates 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 we are required to do so in connection with our ongoing
requirements under federal securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20191028005723/en/
Tyler H. Rose Executive Vice President and Chief Financial
Officer (310) 481-8484 or Michelle Ngo Senior Vice President and
Treasurer (310) 481-8581
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