Kilroy Realty Corporation (NYSE: KRC) today said it plans to develop up to a 400,000 square-foot, 27-story office tower in the heart of San Francisco’s highly desirable South of Market financial district, adapting the company’s signature collaborative workspace concepts to a high-rise office environment.
The company said it has acquired a 0.43 acre, fully entitled development site at 350 Mission Street, a premier location situated at the main entrance of the City’s new transit station for approximately $52 million. KRC expects to invest an additional $200 million developing a high-image glass office tower with floor-to-ceiling windows providing abundant natural light, column-free floor plates offering open-office high-ceiling layouts, and ultra-energy-efficient operating systems—all qualities that are sought after by today’s modern office user.
The Skidmore, Owings & Merrill LLP (SOM) design focuses on the creation of an urban living room that is highly engaged with the City’s urban realm animated by a café, a restaurant, and a digital canvas. It reflects state-of-the-art sustainability practices and energy-usage standards which are targeted to earn the building LEED Platinum certification—the first ground-up commercial development property in San Francisco to do so. The design utilizes numerous innovative technologies with the aim of creating a building with a carbon footprint that will be as close to zero as possible. According to Craig Hartman, FAIA, SOM’s Design Partner, this will be one of the most innovative office use towers in the U.S.
Situated at the corner of Mission and Fremont Streets and immediately across the street from the new Transbay Transit Center, the office tower will offer the convenience, high visibility and urban amenities that are attractive to the city’s technology and media companies as well as traditional space users . KRC said it will heighten the impact of the building’s prominent location with a 50-foot, open air entry lobby featuring a 75x40 foot electronic media display wall—the first of its kind in San Francisco. The new building—designed with a side-core configuration, an all-concrete structure and an under-floor air distribution system—will accommodate the high-density usage and flexible and open interiors preferred by knowledge-based, collaborative workforces. In-building amenities include electric vehicle charging stations, a fitness center with showers and lockers, and a first-class bicycle and storage center.“It is rare that you get the opportunity to build from scratch a cutting-edge urban work environment in one of the nation’s hottest office markets at a cost-basis that makes it highly attractive relative to existing Class A properties. Also, given that there are very few large contiguous spaces available in the market, we have a great opportunity to pre-lease a substantial portion of the building,” said John Kilroy, Jr., president and chief executive officer of KRC. “We intend to make the most of it—for the City and for our tenants.”
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