This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Kilroy Realty Corporation Acquires Value-Add Opportunities In Two West Coast Tech And Media Centers

Stocks in this article: KRC

Kilroy Realty Corporation (NYSE: KRC) continued its successful pursuit of value-add office building opportunities in strongly growing West Coast commercial centers, acquiring a rare development site on Brannan Street in San Francisco’s SOMA district and a Class A office tower in greater Seattle’s prestigious Bellevue community.

KRC said the development site transaction, which closed last week, represents a unique opportunity to build a state-of the-art office property amid one of downtown San Francisco’s most popular technology and media corridors at a total investment cost notably below recent prices paid by other purchasers for similar assets.

In the Seattle transaction, which closed this week, the company said it has purchased a premium quality, multi-tenant office tower, located in a popular high-density submarket that is now experiencing strong demand growth, at a price comfortably below replacement cost. KRC said it plans to significantly enhance the property with a capital improvement and modernization program that will support both property specific and market-based rental rate growth.

Brannan Street Development Site Details. KRC paid approximately $18.5 million for the 0.82-acre development site, located at 329 Brannan Street in San Francisco’s SOMA district. The site is zoned for approximately 5.0 FAR coverage and the company intends to build a six-level office building designed to appeal to the area’s growing community of technology and media companies. It is KRC’s second ground-up development project in Northern California.

The new building will be LEED Gold certified. Its design will reflect the dominant brick and timber character of the neighborhood, similar to properties at 301 and 250 Brannan Street, which KRC also owns and which are both 100% leased. The new building’s design will incorporate open floor plates, concrete floors, large windows to capture natural light, and multiple common areas—all features popular with the area’s creative workforce.

KRC expects to complete entitlements for the development site by year-end 2013 and complete the building in 2015. The company estimates the total cost of the project, including land, will be approximately $80 million.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs