5 Things Kilroy's 10K Says About Its SD Portfolio
From a possible new medical office building to nearly $400M in sales, Kilroy has its feet firmly planted in SD. The firm is buying, selling and developing, and sees tons of upside in the market.
1. Kilroy is working on plans for 9455 Towne Centre Dr, a potential 150k SF MOB. Kilroy SVP Michelle Ngo says the firm is working on entitling the property that is home to a 45k SF office building that will likely be demolished to make way for the MOB. “That's probably not going to happen this year,” she says.
2. Kilroy has a boatload of land that could be turned into new development: about $530M worth. The firm says the undeveloped land holdings throughout San Diego County could equate to another 3M SF.
3. The company sold 17 buildings in 2014, netting nearly $400M, including 9785 (here) and 9791 Towne Centre Dr for nearly $30M and 4040 Civic Center Dr in San Rafael for $35M. Most recently, Kilroy sold 999 Town & Country Road — a 98,500 SF office building in Orange — for $25.3M.
4. The sale of the land parcel at 10850 Via Frontera netted Kilroy $3.5M (on a total sale price of $33.1M). This is the site that Petco is developing into a 300k SF corporate campus.
5. Kilroy reports that “San Diego showed strong signs of growth during 2014 and rental rates continued to increase.” By the end of January, Kilroy's SD portfolio was nearly 94% leased.
