LOS ANGELES--(BUSINESS WIRE)--Oct. 28, 2014-- Kilroy Realty Corporation(NYSE: KRC)today said that the prominent Del Mar Heights office submarket in San Diego has welcomed its first speculative construction in eight years with the groundbreaking earlier this month of the third building at The Heights at Del Mar, a $45 million best in class 74,895 square foot Class A office building.

The Heights Del Mar - Building Three (Photo: Business Wire)

The third building is being developed on the four acre land site that was part of KRC's 2013 acquisition of The Heights at Del Mar campus that also includes two fully leased, LEED Silver certified office buildings totaling 219,000 square feet. The new LEED Gold targeted building, located at 12770 El Camino Real at the intersection of Townsgate Drive, will include three stories with a state-of-the-art design and an amenity-rich environment created to appeal to vibrant companies whose focus is to attract and retain top talent. It is projected to be completed in the fourth quarter of 2015. More information is available at http://www.theheightsdelmar.com.

The Heights at Del Mar is an integral complement to the company's proposed One Paseo, a 23-acre property that will be transformed by KRC into a sustainable, walkable, bikeable, mixed-use environment. The heart of the community will be a Main Street with entertainment, residential, retail and additional office - all designed to enrich community character, improve mobility and local services, as well as support job and economic growth.

Additionally, The Heights at Del Mar is directly across the street from 270,000 square feet of full-service retail and an expansive community park that includes multiuse sports fields, exercise facilities, a gymnasium, basketball and volleyball courts and a swimming pool.

"The Heights at Del Mar is located in the heart of what will become the best walkable amenity base in Del Mar Heights and has superb access to freeways and executive and workforce housing," said John Kilroy, Jr., KRC's chairman, president and chief executive officer. "KRC is a long-time stakeholder in Carmel Valley. We are very pleased to be bringing this exciting new building to the area, which continues its evolution as one of the county's most vibrant and engaging places for people to work, socialize, shop and dine."

Designed by Gensler, the building will feature steel frame construction, spectacular floor to ceiling glass, a top floor balcony and indoor/outdoor workspaces. The campus offers a myriad of amenities, including a state-of-the-art fitness center, golf simulator, outdoor amphitheater and under-building secured executive parking.

Cassidy Turley, a leading U.S. commercial real estate services provider, will act as KRC's exclusive leasing agent for the property. "Del Mar Heights is a place where employers want to be, yet Class A space options are increasingly hard to find - particularly when looking for larger, full floor or greater opportunities," said Brett Ward, managing director with Cassidy Turley in San Diego. "KRC's long-standing presence and contributions to the market's growth and development make the new building at The Heights at Del Mar a highly anticipated signature addition that will help accommodate the growing demand for this high caliber space."

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, 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 broad roster of dynamic, innovation-driven tenants, including technology, entertainment, digital media and health care companies.

At September 30, 2014, the company's stabilized portfolio totaled 13.5 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. The company is recognized by the Global Real Estate Sustainability Benchmark (GRESB) as the North American leader in sustainability and was ranked first among 151 North American participants across all asset types. At the end of the third quarter, the company's properties were 41% LEED certified and 59% of the eligible properties were ENERGY STAR certified. In addition, KRC has approximately 2.0 million square feet of new office development under construction with a total estimated investment of approximately $1.2 billion. More information is available at http://www.kilroyrealty.com.

About Cassidy Turley

Cassidy Turley is a leading commercial real estate services provider with more than 4,000 professionals in more than 60 offices nationwide. With headquarters in Washington, DC, the company represents a wide range of clients-from small businesses to Fortune 500 companies, from local non-profits to major institutions. The firm completed transactions valued at $25.8 billion in 2013, manages approximately 400 million square feet on behalf of institutional, corporate and private clients and supports more than 24,000 domestic corporate services locations. Cassidy Turley serves owners, investors and tenants with a full spectrum of integrated commercial real estate services-including capital markets, tenant representation, corporate services, project leasing, property management, project and development services, and research and consulting. Cassidy Turley enhances its global service delivery outside North America through a partnership with GVA, giving clients access to commercial real estate professionals in 65 international markets. Please visit www.cassidyturley.com for more information about Cassidy Turley.

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.

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Source: Kilroy Realty Corporation

Kilroy Realty Corporation
Tyler H. Rose
Executive Vice President and Chief Financial Officer
(310) 481-8484
or
Michelle Ngo
Senior Vice President and Treasurer
(310) 481-8581

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