Kilroy Realty Buys Site in Mission Bay - Analyst Blog

A generic image of a person pointing to something on a tablet
Credit: Shutterstock photo

Kilroy Realty Corporation ( KRC ) 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 2015.

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 premium assets.

Kilroy Realty currently carries a Zacks Rank #3 (Hold). Investors interested in the REIT industry may consider stocks like The GEO Group, Inc. ( GEO ), Parkway Properties Inc. ( PKY ) and Terreno Realty Corp. ( TRNO ). All these stocks carry a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

KILROY REALTY (KRC): Free Stock Analysis Report

PARKWAY PPTY (PKY): Free Stock Analysis Report

TERRENO REALTY (TRNO): Free Stock Analysis Report

GEO GRP INC/THE (GEO): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More