LOS ANGELES--(BUSINESS WIRE)--Kilroy Realty Corporation (NYSE: KRC) today said it has signed a long-term lease with Viacom Inc. (NASDAQ: VIAB, VIA) for approximately 180,000 square feet of space at KRC’s 685,000-square-foot, mixed-use Columbia Square development located in the heart of Hollywood.
The New York-based company plans to relocate and unite the West Coast operations of Viacom media networks including BET, Comedy Central, MTV, Spike TV, VH1 and TV Land currently based in Santa Monica and in other Los Angeles offices into Columbia Square’s 250,000-square-foot Gower Building.
The six-story, dual-core glass and steel Gower Building is the larger of two new office buildings totaling 350,000 square feet currently under construction as part of KRC’s $420 million mixed-use project located on Sunset Boulevard. Designed by Rios, Clementi, Hale Studios, Columbia Square will also feature 93,000 square feet of renovated, historical creative office and studio space, 30,000 square feet of retail space, 200 luxury residential units and a five-level subterranean parking structure. Viacom is expected to take occupancy in phases starting in late 2016.
“This is the largest lease to be signed in Hollywood in the last ten years,” said Kilroy Realty Executive Vice President David Simon. “The decision by one of the giants in the entertainment industry to relocate the West Coast operations of some of its most popular networks and consolidate them at Columbia Square further demonstrates that office environments matter. This is a bellwether event for both Columbia Square and the ongoing rebirth of Hollywood.”
“Viacom's move to Hollywood shows yet again that Los Angeles is open for business,” said Los Angeles Mayor Eric Garcetti. “KRC’s successful re-imagining of Columbia Square, which will now be anchored by Viacom, is a sterling example of the surging investment happening in Hollywood and across Los Angeles. Companies like KRC and Viacom are right at home here in our city of dreamers and doers.”
“Viacom’s decision to come to Columbia Square is proof that Hollywood is still the entertainment capital of the world,” said Councilmember Mitch O’Farrell. “I am thrilled that Viacom is wisely investing in this community and in the City of Los Angeles, bringing production jobs to an area with such a rich tradition in the history of television.”
This is the second significant lease to be signed at Columbia Square since KRC broke ground on the project in February 2014. In July, New York City-based NeueHouse, a private workspace collective, signed a 15-year lease to occupy 93,000 square feet in the original William Lescaze-designed Radio and Business buildings that anchor Columbia Square. NeueHouse is expected to take occupancy in the spring of 2015.
Carl Muhlstein of JLL represented Kilroy Realty. Gerald Porter and Matthew Miller of Cresa represented Viacom. Raymond I. Friedman of Elkins Kalt Weintraub Reuben Gartside LLP acted as legal counsel for Kilroy Realty on the transaction.
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, 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 broad roster of dynamic, innovation-driven tenants, including technology, entertainment, digital media and health care companies.
At September 30, 2014, the company’s stabilized portfolio totaled 13.5 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 third quarter, the company’s properties were 41% LEED certified and 59% of the eligible properties were ENERGY STAR certified. In addition, KRC has approximately 2.0 million square feet of new office development under construction with a total estimated investment of approximately $1.2 billion. More information is available at http://www.kilroyrealty.com.
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