NeueHouse to Occupy 93,000 Square Foot Radio and Business Buildings at Kilroy Realty's Columbia Square in Hollywood
LOS ANGELES--(BUSINESS WIRE)--
Kilroy Realty Corporation(NYSE:KRC) announced today that
it has entered into a 93,000 square foot lease agreement with New York
City-based NeueHouse, which will bring its private membership
collaborative concept to KRC's Columbia Square in the first quarter of
2015. The 15-year transaction is the largest lease to be signed in
Hollywood in more than five years.
NeueHouse will occupy all of the office space in the newly renovated,
historical Radio and Business buildings that anchor Columbia Square, a
$400 million, 685,000 square foot mixed-use creative office, retail and
residential development now under construction on the site of CBS'
historic, early 20th century broadcast facility on Sunset
Boulevard. This is the second location for NeueHouse, which plans to
open 20 collaborative offices around the world by 2020. The first
NeueHouse opened its doors in May 2013 in New York City and sold out
within three months.
Built in 1938 at a cost of $2 million, the distinctive Radio building
was the most expensive broadcasting facility ever built at the time. The
former home to CBS' West Coast operations, the building included the
25,000 square foot Columbia Playhouse, from which radio comedies
featuring Jack Benny, Burns and Allen, Edgar Bergen and Red Skelton were
broadcast in front of a live audience. Kilroy Realty has been working
closely with the Hollywood Heritage, Historic Resources Group and the
City of Los Angeles to preserve the building, which was designated an
historic-cultural monument in 2009.
"Columbia Square brought together under one roof the great minds in the
golden age of radio to produce some of the most memorable shows in
entertainment history," said Kilroy Realty Executive Vice President
David Simon. "As a result of our alliance with NeueHouse, that kind of
creativity and collaboration will once again pulse through one of the
most important buildings in Hollywood."
Conceived by venture capitalists Joshua Abram and Alan Murray, NeueHouse
has pioneered a new model for the collaborative workplace by creating a
series of spaces, experiences and amenities that cater to "solopreneurs"
and teams of up to 20 people in the creative arts, including such fields
such as film, design, publishing, the performing arts and technology.
NeueHouse offers a range of memberships to meet the needs of those who
may not require a dedicated office space but can benefit from
NeueHouse's interdisciplinary and imaginative cultural experience, as
well for rapidly growing firms. All members have access to NeueHouse's
fully equipped recording studios, post-production and broadcast
facilities, conference rooms, screening room, and private dining rooms
with in-house food service.
As part of the experience, NeueHouse will curate a wide range of events
for its members including evenings with artists, industry leaders,
performers and acclaimed speakers. Programs will range from a weekly
conversation series to film screenings, concerts, readings and private
Kilroy Realty and NeueHouse have formed a strategic alliance and will
continue to work together sourcing other West Coast opportunities.
Carl Muhlstein of Jones Lang LaSalle represented Kilroy Realty in the
transaction. NeueHouse was represented by Steve Kolsky and Neal Golden
of Newmark Knight Frank.
About Kilroy Realty Corporation. With more than 65 years'
experience owning, developing, acquiring and managing real estate assets
in West Coast real estate markets, Kilroy Realty Corporation ( KRC ), a
publicly traded real estate investment trust and member of the S&P
MidCap 400 Index, is one of the region's premier landlords. The company
provides physical work environments that foster creativity and
productivity, and serves a roster of dynamic, innovation-driven tenants,
including technology, entertainment, digital media and health care
At March 31, 2014, the company's stabilized portfolio totaled 13.3
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. 41% of the company's properties were LEED
certified and 55% of the eligible properties were ENERGY STAR certified.
In addition, KRC has approximately 2.5 million square feet of new office
development under construction with a total estimated investment of
approximately $1.5 billion. More information is available at http://www.kilroyrealty.com.
Forward-Looking Statements. This press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements are based
on our current expectations, beliefs and assumptions, and are not
guarantees of future performance. Forward-looking statements are
inherently subject to uncertainties, risks, changes in circumstances,
trends and factors that are difficult to predict, many of which are
outside of our control. Accordingly, actual performance, results and
events may vary materially from those indicated in forward-looking
statements, and you should not rely on forward-looking statements as
predictions of future performance, results or events. Numerous factors
could cause actual future performance, results and events to differ
materially from those indicated in forward-looking statements,
including, among others, risks associated with: investment in real
estate assets, which are illiquid; trends in the real estate industry;
significant competition, which may decrease the occupancy and rental
rates of properties; the ability to successfully complete acquisitions
and dispositions on announced terms; the ability to successfully operate
acquired properties; the availability of cash for distribution and debt
service and exposure of risk of default under debt obligations; adverse
changes to, or implementations of, applicable laws, regulations or
legislation; and the ability to successfully complete development and
redevelopment projects on schedule and within budgeted amounts. These
factors are not exhaustive. For a discussion of additional factors that
could materially adversely affect our business and financial
performance, see the factors included under the caption "Risk Factors"
in our annual report on Form 10-K/A for the year ended December 31, 2013
and our other filings with the Securities and Exchange Commission. All
forward-looking statements are based on information that was available,
and speak only as of the date on which they are made. We assume no
obligation to update any forward-looking statement made in this press
release that becomes untrue because of subsequent events, new
information or otherwise, except to the extent required in connection
with ongoing requirements under U.S. securities laws.
Source: Kilroy Realty Corporation