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Kilroy (KRC) Picks Adobe as Anchor Tenant for 100 Hooper

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Kilroy Realty Corporation (KRC - Free Report) recently announced that it has roped in the reputed software company – Adobe – as its anchor tenant for the 100 Hooper development. Specifically, the company broke ground on 100 Hooper – a $270 million, 400,000 square foot project in the SOMA district of San Francisco – and struck a long-term lease deal with Adobe. Per this deal, the software firm would occupy 207,000 square feet or around 65% of 100 Hooper’s office space.

Located in the transformative SOMA neighborhood of Showplace Square, this development project is entitled for 314,000 square feet of office as well as 86,000 square feet of Production, Distribution and Repair (PDR) space. It would comprise two, four-story buildings on a 3.3-acre site.

In the beginning, Adobe would occupy 155,000 square feet of space. However, within 15 months of completion of construction, which is slated to take place in 2018, Adobe would occupy 52,000 square feet of space. The software firm has its main San Francisco office near to the 100 Hooper site.

This development is expected to witness solid demand for space from tenants, going forward. The site boasts the thriving residential neighborhoods of Mission Bay, Potrero Hill and Dogpatch. It is also well connected by public transportation, including direct access to the Mission Bay Shuttle, connecting BART and Caltrain.

Moreover, this site serves as a key location for Kilroy Realty in a technology cluster that includes prominent names in the tech fields, like Advent, AirBnB, Pinterest, salesforce.com and Zynga. Also, this technology campus offers an interchange between class A office and manufacturing space and is therefore suited well to capitalize on the diverse economy and a vibrant mix of businesses in the city of San Francisco. Particularly, the PDR business adds feather to that and space creation for such activities seems a strategic fit.  

Kilroy Realty has a solid expertise in in the West Coast real estate market and as of Sep 30, 2016, the company’s stabilized portfolio aggregated 13.6 million square feet of office properties, positioned in the coastal regions of greater Seattle, the San Francisco Bay Area, Los Angeles, Orange County and San Diego.

Shares of Kilroy Realty were up 1.72% during Friday’s session on the NYSE.

Kilroy Realty currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors interested in the REIT industry may consider stocks like Duke Realty Corp. , EastGroup Properties (EGP - Free Report) and Mack-Cali Realty Corp. . Each of these stocks carries a Zacks Rank #2 (Buy).

Both Duke Realty and EastGroup Properties have experienced upward revisions in full-year 2016 estimates over the past two months, while Mack-Cali has long-term expected growth rate of 6.4% against the industry average of 5.8%.

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