Kilroy Strikes Deal With Flower Mart Group
In a late deal that will keep Kilroy Realty's plans for a massive redevelopment of the historic Flower Mart in SoMa alive, the developer has reached a deal with a group of tenants that could now allow it to avoid a battle on the November ballot. Kilroy's 1.5M SF office complex was being opposed by some vendors who wanted rent and space concessions. But now the developer's vision could be saved, despite the group gathering nearly double the amount of signatures required, reports the San Francisco Chronicle. In December, Kilroy unveiled plans to pay $80M to keep the historic flower market on the same site as the office space by moving it underground.
The new mart is slated to be done in 2018, sized a little smaller than the current one (115k SF vs 135k SF). Kilroy had previously been offering current vendors five-year leases and their current low rents in the new space and will foot the bill for moving costs. No details on the deal are out yet, but we'll be tracking. [SFC]