LOS ANGELES, October 1, 2012 – Kilroy Realty Corporation (NYSE: KRC) today announced that it has expanded its market position within Southern California’s improving technology, media and entertainment economy with the $65 million acquisition of Columbia Square, an historic media campus in Hollywood, and the expected early fourth quarter acquisition of Tribeca West, a West Los Angeles entertainment-oriented office property, for $73 million.
At full build-out, the 4.7 acre Columbia Square site in Hollywood will include a mixed-use development of up to 650,000 square feet, reduced from a recently entitled 875,000 square-foot project. This newly acquired site at 6121 Sunset Blvd. will be redeveloped to preserve its historic character, while creating a state-of-the-art media campus, a new residential community, and an amenity-rich retail environment.
This follows the recent acquisition of Sunset Media Center at 6255 Sunset Blvd., which is currently undergoing significant upgrades and repositioning, and continues the expansion of KRC’s media campus offerings, which include Westside Media Center, home to Shopzilla, Fandango and Comcast, to meet the unique needs of the “digitainment” industry, a growing segment transforming the business landscape of Los Angeles.
“The entertainment space is experiencing an exciting revival with the convergence of the tech and entertainment industries. KRC is positioned to create synergies for the production, post-production and creative media companies whose operations are currently scattered throughout the city,” explained David Simon, KRC’s executive vice president for the Los Angeles region. As L.A. continues to grow its creative economy, Hollywood is experiencing a revival driven by its live-work environment, which has and will continue to be the catalyst for both larger and smaller entertainment and media companies locating there to collaborate with large studios and production companies.
The Columbia Square site has a rich history in Hollywood, described in the 1940s as “a magnificent structure…where the motion picture industry first took root in Hollywood in 1911.” KRC is working with a premier team of Los Angeles-based architects and designers including Roschen Van Cleve, Rios Clementi Hale and House & Robertson on the multi-phase redevelopment and development of the site. This will include redeveloping the existing, historic office buildings, preserving the International Modernist design of Swiss architect, William Lescaze, and developing approximately 550,000 square feet of additional office, retail and residential space over the next several years. Upon full build-out, KRC will have invested $300 million in this new media campus to attract and retain those drawn to Hollywood. “The new media campus will help ensure that Hollywood the industry stays in Hollywood the community, bringing the jobs of today and tomorrow to the neighborhood,” said Los Angeles City Councilmember Eric Garcetti, who represents the district where Columbia Square is located.
For KRC, Tribeca West at 12233 W. Olympic Blvd. will serve as inspiration for its Hollywood properties. Tribeca West has long been known as the property-of-choice on the Westside among prominent entertainment industry executives, with a rich track record as the post-production hub of such box office hits as “The Campaign,” “Snow White,” “Savages” and “Wall Street: Money Never Sleeps.” Tribeca West further enhances KRC’s ability to deliver the flexible environments that catalyze collaboration across the tech and entertainment sectors.
Together with KRC’s recent Sunset Media Center acquisition in Hollywood and its other Westside properties, including Westside Media Center and Santa Monica Media Center, the company has created a significant platform of media-related properties in Los Angeles that will cater to KRC’s expanding roster of entertainment-oriented tenants. Such moves only stand to benefit the film production industry as a whole, which has been adversely affected in recent years by runaway production. According to the Los Angeles Economic Development Corporation, motion picture and TV production is “one of Los Angeles’ signature industries” and “a major driver of economic activity in the area.”
KRC continues to develop its portfolio to meet the needs of the market, acquiring and remaking properties to serve the growing need for increased housing options, desirable amenities and closeness to major studios coupled with proximity to public transportation and freeways.
“We are focused intently on creating meaningful long-term value in these properties and our strategy is to stay ahead of the curve when it comes to the changing needs of this key industry sector,” adds Simon.
LA411.com, a leading entertainment industry production resource, lists over 5,000 companies in the production sector in L.A. with over 2,000 in post-production. Combined with the more than 700 tech companies listed on Represent.LA, the growing number of next generation entertainment media companies is driving a whole new type of need when it comes to workspace leasing and environment. KRC is demonstrating a keen understanding of this new-era trend, knitting together a tight network of campuses designed to be agile and infrastructure-rich for the new breed of companies seeking collaborative environments and flexible lease options.
About Kilroy Realty Corporation (KRC)
Kilroy Realty Corporation, a member of the S&P Small Cap 600 Index, is a real estate investment trust active in premier office and industrial submarkets along the West Coast. For over 60 years, the company has owned, developed, acquired and managed real estate assets, consisting primarily of Class A real estate properties in the coastal regions of Los Angeles, Orange County, San Diego, greater Seattle and the San Francisco Bay Area. At June 30, 2012, the company owned 15.6 million rentable square feet of commercial office and industrial space. More information is available at http://www.kilroyrealty.com.
Executive Vice President
Elizabeth A. Smagala
Vice President, Development
and Government Affairs