Less than two years after acquiring the 40-year-old, 410,000 square-foot office building at 360 Third Street, Kilroy Realty Corporation (NYSE:KRC) has successfully transformed the property into a contemporary office and studio space for the media and technology tenants that now dominate SOMA’s real estate landscape. Last week, the redeveloped property—now 85% leased—was awarded LEED Gold certification. “From the beginning, our goal was to deliver a top quality, top performing work environment with all the amenities sought after by creative and innovation-driven companies flooding into the SOMA area,” said John Kilroy, Jr., KRC’s chairman, president and CEO. “Not only did we achieve this but I think we’ve successfully converted this former Pacific Bell call center into a ‘hip and cool’ new digital, media and technology powerhouse.” Today, 360 Third Street features San Francisco’s largest roof deck with views of the Bay Bridge, AT&T Ball Park and the San Francisco Bay including a rooftop bar, integrated lighting and sound systems, fire pits and extensive landscaping. Elevator systems were modernized and extended to the roof deck, building infrastructure was updated to support densification and the lobby and floor plans were redesigned into contemporary, collaborative layouts. A new irrigation system was installed that reduces landscaping water usage by 50%, and a new measurement and verification system was added to the building that allows individual tenants to monitor and manage energy consumption. Bicycle storage and showers were also incorporated into the new design as part of the amenity package that tenants seek in today’s modern office campuses. “We were able to create a new vibe in the building—taking it from un-inspired shell office space and conventional common areas to more vibrant and productive technology and media space with inviting public areas that include indoor and outdoor ‘great’ rooms and modern amenities. Achieving LEED Gold certification serves as a testament to the successful transformation of the project by our team,” said Mike Sanford, KRC’s Senior Vice President, Northern California.
KRC acquired 360 Third Street in late 2011 when the building was 9% occupied by media conglomerate, ComCast SportsNet who uses the space to broadcast its CSN Bay Area programs. Building off Comcast’s studio, 360 Third Street was able to attract Pac-12 Enterprises, who signed an 11-year lease almost immediately after KRC closed on the acquisition. The multi-floor lease agreement with PAC-12 Enterprises included the creation of a state-of-the-art studio for PAC-12’s broadcasting arm. In addition to ComCast SportsNet and PAC-12 Enterprises, the roster of tenants at 360 Third Street currently includes KNTV, AKQA, Square Trade, Flurry, Real Page and Clinkle.About Kilroy Realty Corporation. Kilroy Realty Corporation, a member of the S&P MidCap 400 Index, is a real estate investment trust active in major West Coast office markets. For over 65 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of Los Angeles, Orange County, San Diego, the San Francisco Bay Area and greater Seattle. At June 30, 2013, the company owned 13.5 million rentable square feet of commercial office space. More information is available at http://www.kilroyrealty.com.