Kilroy Realty Corporation
) disclosed a $95 million acquisition of a 3.1 acre development
site in San Francisco's Mission Bay neighborhood and its plan to
start building a 680,000 square-foot mid-rise office campus in
Positioned at the southwestern periphery of Mission Bay and next to
the 280 Freeway and alongside the 16th Street Corridor, this
property is expected to be in high demand for millennial
neighborhoods of Potrero Hill, the Mission District and Dogpatch.
Shuttle services to Caltrain and BART are available at the site and
it is also within walking distance from the new Central Subway
line, which is scheduled to be complete later this decade.
This West Coast real estate investment trust (REIT) plans to invest
around $450 million (incorporating the land acquisition) for
developing the office campus, which can be constructed in two
phases. With this, the company aims at meeting the dearth of
collaborative space, which is in high demand in San Francisco.
As a matter of fact, Mission Bay is rapidly finding its place among
the popular locations in San Francisco and the region serves as one
of the fastest growing residential, job and entertainment centers.
It is attracting an increasing number of retail and entertainment
amenities. Hence, we believe that this purchase is a strategic fit
and would aid Kilroy Realty in expanding its property base with
Kilroy Realty currently carries a Zacks Rank #3 (Hold). Investors
interested in the REIT industry may consider stocks like
The GEO Group, Inc.
Parkway Properties Inc.
Terreno Realty Corp.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
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