Kilroy Realty Corporation Acquires Hollywood Development Site for Planned Mixed-Use Media Campus

LOS ANGELES--(BUSINESS WIRE)--

Kilroy Realty Corporation KRC announced today that it has acquired from The Academy of Motion Pictures Arts and Sciences (AMPAS), in an off-market transaction, an approximate four-acre parcel near the intersection of Sunset Boulevard and Vine Street in Hollywood, CA for $46 million.

Encompassing a full city block, the Academy site, which was originally intended for the Academy Museum of Motion Pictures, is one of the few remaining mixed-use development sites that exist today in Hollywood. The site is also located just two blocks from the Red Line Metro stop, the subway line that runs between Downtown Los Angeles and Hollywood. The company plans to seek approval and obtain entitlements to develop a creative media mixed-use campus that will include approximately 475,000 square feet of low- and mid-rise office space, apartments and retail space with a total investment between $250 million and $300 million. With a limited supply of quality state of the art mixed-use development in Hollywood, the Academy site will allow the company to further develop an inventory of cutting-edge product highly focused on the entertainment, media and technology user base.

Shimoda Design Group whose award-winning work includes the renovation of 6565 Sunset Boulevard in Hollywood and the Rolex Building in Beverly Hills will design the project under the direction of executive architect House Robertson.

Currently located on the site are several vacant industrial type buildings and a landscaped open space created by AMPAS in the summer of 2012 for public movie screenings. The site is expected to generate revenue from the existing buildings through short term leases and excess parking and the improved grounds will be used for special events, film and commercial shoots. Entitlements are anticipated to take 18 to 24 months.

In 2013, the company commenced construction on its $390 million Columbia Square project, a planned 675,000 square-foot mixed use campus located at 6121 Sunset Boulevard, the former site of CBS Los Angeles' television and radio operations. Kilroy Realty is also undertaking a multi-million dollar renovation of Sunset Media Center, a 22-story, 322,000 square foot office complex located at 6255 Sunset Boulevard that will be completed in the first quarter.

“Hollywood will always be the entertainment capital of the world, yet for it to continue to attract and retain production, digital media and technology companies, we need to create environments that the modern work force wants and needs,” said David Simon, KRC's executive vice president. “The supply of efficient and memorable office space in Hollywood is arguably in short supply and our projects are designed to meet the demand. Sunset Media Center is a prime example. Less than eighteen months from its purchase and a month away from completion of renovation, we have benefited from rents almost 30% above our initial proforma. This bodes very well for the Academy and Columbia Square.”

About Kilroy Realty Corporation. With more than 65 years of experience owning, developing, acquiring and managing commercial properties in West Coast real estate markets; publicly traded real estate investment trust Kilroy Realty Corporation (KRC), a member of the S&P MidCap 400 Index, is one of the region's premier landlords. The company provides physical work environments that can advance creativity and productivity to serve a roster of dynamic, innovation-driven tenants that includes technology, entertainment, digital media and health care companies. At September 30, 2013, the company's stabilized portfolio totaled 12.5 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. In addition, KRC has approximately 1.9 million square feet of new office development under construction with a total estimated investment of approximately $1.1 billion. More information is available at http://www.kilroyrealty.com.

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