LOS ANGELES--(BUSINESS WIRE)--Kilroy Realty Corporation (NYSE: KRC) today said that Box, Inc. (“Box”), a leading provider of secure cloud content management services for global businesses, has signed an approximate 12-year lease for 100% of Crossing/900, the 334,000 square foot, Korth Sunseri Hagey-designed two-building office project currently under construction in Redwood City, California, steps away from the city’s Caltrain station. The project also contains approximately 5,000 square feet of retail space.
“We are delighted to welcome Box to our portfolio of dynamic West Coast tenants,” said John Kilroy, Jr., KRC’s chairman, president and chief executive officer. “Crossing/900 continues our extensive record of developing vibrant environments that allow fast growing companies to hire and retain talent in the Bay Area’s extremely competitive job markets. With Crossing/900 fully leased, we are now close to 85% leased on our six office projects currently under construction, which have a total estimated investment of approximately $1.5 billion.”
Crossing/900 will be a LEED Gold certified development project that will feature contemporary design, large open floor plates, elevated terrace and plaza areas, abundant structured parking and up-sized base building features that allow for greater densities that are highly desirable among today’s modern workforce. The campus is located in Redwood City’s downtown urban core, within walking distance of retail, dining and entertainment amenities, as well as more than 1,500 residential units under construction. It is also conveniently close to the two major freeways serving the region and San Francisco International Airport. “The project’s live, work, play location and innovative design that fosters collaboration amongst employees appeal to both technology and professional service tenants,” said Mike Sanford, KRC’s senior vice president, Northern California.
KRC owns 93% of Crossing/900 in a venture with Hunter Storm, a private development company.
“We appreciate the strong and successful relationship we have developed with Kilroy Realty and Hunter Storm and their commitment to start the project on a speculative basis and deliver a state of the art office campus designed to attract global technology leaders, like Box, to our City. The Box lease represents a major milestone in realizing the community’s desire for a vibrant downtown neighborhood that includes a mix of uses and tenants – the vision of our Precise Plan,” said Jeff Gee, Mayor of Redwood City.
Box will take occupancy of the first building, totaling approximately 226,000 square feet in the third quarter of 2015 and the second building, totaling approximately 108,000 square feet in early 2017.
Ben Stern and Matt Winters from Cornish and Carey Commercial Newmark Knight Frank represented the tenant and Mike Moran and Ben Paul from Cassidy Turley represented the landlord.
About Kilroy Realty Corporation. With more than 65 years’ experience owning, developing, acquiring and managing real estate assets in West Coast real estate markets, Kilroy Realty Corporation (KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is one of the region’s premier landlords. The company provides physical work environments that foster creativity and productivity and serves a roster of dynamic, innovation-driven tenants, including technology, entertainment, digital media and health care companies.
At June 30, 2014, the company’s stabilized portfolio totaled 13.2 million square feet of office properties, all located in the coastal regions of greater Seattle, the San Francisco Bay Area, Los Angeles, Orange County and San Diego. The company is recognized by the Global Real Estate Sustainability Benchmark (GRESB) as the North American leader in sustainability and was ranked first among 151 North American participants across all asset types. At the end of the second quarter, the company’s properties were 41% LEED certified and 57% of the eligible properties were ENERGY STAR certified. In addition, KRC has approximately 2.5 million square feet of new office development under construction with a total estimated investment of approximately $1.5 billion. 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 in forward-looking statements, and you should not rely on 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 forward-looking statements, including, among others, risks associated with: investment in real estate assets, which are illiquid; trends in the real estate industry; significant competition, which may decrease the occupancy and rental rates of properties; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired properties; the availability of cash for distribution and debt service and exposure of risk of default under debt obligations; adverse changes to, or implementations of, applicable laws, regulations or legislation; and the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts. These factors are not exhaustive. 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/A for the year ended December 31, 2013 and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on information that was available, and speak only as of the date 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 required in connection with ongoing requirements under U.S. securities laws.