Kilroy Realty Corporation (NYSE: KRC) today announced that its four-building, 750,000 square foot office development, The Exchange on Sixteenth, has earned LEED Platinum certification under the Core & Shell rating system created by the US Green Building Council. The project is fully leased to Dropbox, Inc. (NASDAQ: DBX), which will take occupancy in phases through 2020. Sustainable elements were incorporated into all aspects of the building design.
KRC has a successful track record of sustainability achievements. GRESB, widely recognized as the most rigorous standard for measuring the sustainability performance of real estate companies and funds, named KRC the global leader on sustainability among all publicly traded real estate companies.
The Exchange demonstrates the successful execution of combining great design with ambitious sustainability goals, says Jonas Vass, Senior Vice President of Development at KRC. The LEED Platinum certification shows the teams extensive focus on sustainability from the project inception through completion, successfully incorporating various environmental goals throughout the process.
The Exchange on Sixteenth exhibits forward-thinking environmentally-focused design that includes the following features:
- Extensive green roofs
- 45% water reduction using highly efficient water fixtures
- Holistic approach to health & wellness including ample daylight, access to views, activated stairwells, mechanical design emphasizing thermal comfort, and low-emitting materials
- Large onsite bicycle amenity
- Remediated brownfield
- A 19% reduction in energy consumption via an efficient mechanical system
- Materials purchasing focused on recycled content, regional sourcing, and FSC wood
- Enhanced commissioning
- Electric car charging stations
The project was designed by Rios Clementi Hale Studios with Flad Architects providing executive architecture services. Marelich created the mechanical, electrical and plumbing design. Hathaway Dinwiddie oversaw the construction of the project, and Stok executed the commissioning and LEED services work.
The Exchange on Sixteenth is located in the vibrant Mission Bay district of San Francisco with high connectivity to public transit, restaurants, art galleries, breweries, and the Giants and Warriors Stadiums. With the completion of The Exchange, KRCs San Francisco Bay Area portfolio totals approximately 6.5 million square feet.
About Kilroy Realty Corporation. Kilroy Realty Corporation (KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is one of the West Coasts premier landlords. The company has over 70 years of experience developing, acquiring and managing office and mixed-use real estate assets. 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, 2018, the companys stabilized portfolio totaled approximately 13.9 million square feet of office space located in the coastal regions of Los Angeles, Orange County, San Diego, the San Francisco Bay Area and Greater Seattle and 200 residential units located in the Hollywood submarket of Los Angeles. In addition, KRC had three projects under construction totaling approximately 1.0 million square feet of office space, 608 residential units and 120,000 square feet of retail space as well as two projects in the tenant improvement phase totaling approximately 1.2 million square feet of office and PDR space. The office components of the two projects are fully leased to Adobe and Dropbox.
The companys commitment and leadership position in sustainability has been recognized by various industry groups across the world. In September 2018, the company was recognized by GRESB as North American leader across all asset classes and global world leader among all publicly traded real estate companies. Other sustainability accolades include NAREITs Leader in the Light award for the past four years, the EPAs highest honor of Sustained Excellence and winner of Energy Star Partner of the Year for the past five years. The company is listed in the Dow Jones Sustainability World Index. At the end of the third quarter, the companys stabilized portfolio was 59% LEED certified and 77% of eligible properties were ENERGY STAR certified. 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 the forward-looking statements, and you should not rely on the 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 the forward-looking statements, including, among others: global market and general economic conditions and their effect on our liquidity and financial conditions and those of our tenants; adverse economic or real estate conditions generally, and specifically, in the States of California and Washington; risks associated with our investment in real estate assets, which are illiquid, and with trends in the real estate industry; defaults on or non-renewal of leases by tenants; any significant downturn in tenants businesses; our ability to re-lease property at or above current market rates; costs to comply with government regulations, including environmental remediation; the availability of cash for distribution and debt service and exposure to risk of default under debt obligations; increases in interest rates and our ability to manage interest rate exposure; the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue development, redevelopment and acquisition opportunities and refinance existing debt; a decline in real estate asset valuations, which may limit our ability to dispose of assets at attractive prices or obtain or maintain debt financing, and which may result in write offs or impairment charges; significant competition, which may decrease the occupancy and rental rates of properties; potential losses that may not be covered by insurance; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired, developed and redeveloped properties; the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts; delays or refusals in obtaining all necessary zoning, land use and other required entitlements, governmental permits and authorizations for our development and redevelopment properties; increases in anticipated capital expenditures, tenant improvement and/or leasing costs; defaults on leases for land on which some of our properties are located; adverse changes to, or implementations of, applicable laws, regulations or legislation, as well as business and consumer reactions to such changes; risks associated with joint venture investments, including our lack of sole decision-making authority, our reliance on co-venturers financial condition and disputes between us and our co-venturers; environmental uncertainties and risks related to natural disasters; and our ability to maintain our status as a REIT. These factors are not exhaustive and additional factors could adversely affect our business and financial performance. 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 for the year ended December 31, 2017 and our other filings with the Securities and Exchange Commission. All forward-looking statements are based on currently available information, 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 we are required to do so in connection with our ongoing requirements under federal securities laws.
Kilroy Realty Corporation
Senior Vice President