The plan – still more of an idea backed by a handful of studies – would continue the transformation of a once-gritty area by creating a new neighborhood full of residences, offices, shops and restaurants, hotels, and entertainment establishments. But opening the area to development would mean major changes to the city’s transportation system and could affect plans for high-speed rail and for extending and electrifying Caltrain.

In addition to demolishing I-280 from 16th Street north and replacing it with an Embarcadero-style boulevard much like the Octavia Boulevard replacement of the Central Freeway, the plan envisions:

– Shrinking – and perhaps eventually eliminating – the Caltrain yard at Fourth and King streets.

– Eliminating the need for deep underpasses beneath a future high-speed rail line, one at 16th Street and one at what will one day be the Mission Bay Boulevard crossing.

— Possibly rerouting the long-planned, but still unfunded, Caltrain extension to the Transbay Transit Center, which would also carry high-speed trains when they arrive in the next decade.

Together, the 20-acre Caltrain rail yard and the massive concrete I-280 structure and right-of-way create a wall that isolates the growing Mission Bay neighborhood from downtown, and is an outmoded and inefficient use of what has become prime real estate, San Francisco officials argue.

‘Something really smart’

“We can do something really smart here,” said Gillian Gillett, Mayor Ed Lee’s transportation policy director and author of a six-page letter that lays out the city’s vision to the Metropolitan Transportation Commission, the Bay Area’s transportation planning and financing agency.

But not everyone is on board. Caltrain officials are concerned that the city’s plans could stall or even stop plans to electrify the commuter railroad, a decades-long effort that moved close to reality only last summer when the state Legislature and the California High-Speed Rail Authority made it part of the new “blended” high-speed train project that will share the tracks, and gave it $700 million.

“We understand it’s a good thing to do, but we are concerned about the implications if we change” the rail yard, said Marian Lee, director of Caltrain’s modernization project.

High-speed trains are not likely to reach the Peninsula until 2026 at the earliest, but Caltrain wants its rails electrified by 2019. With electric power and lighter trains that can start and stop faster, Caltrain could add service, cut fuel costs and reduce emissions produced by its diesel locomotives. Electrification is a key part of the business plan for the financially struggling rail line.

The trouble is that Caltrain is in the midst of revising an environmental impact report for the electrification project. San Francisco officials want that update to include the possible downsizing or elimination of the Fourth and King rail yards. Caltrain officials fear that expanding the study, especially if it requires development of new train storage areas, would mire the project in red tape and possibly endanger the state funding.

“There is an urgency for Caltrain to get electrification in place with expediency,” said Jayme Ackemann, a Caltrain spokeswoman. “With electrification we significantly reduce our operating costs.”

Shrinking the rail yard could increase Caltrain’s operating costs if it needs to store trains farther from the Fourth and King station and bring them downtown to start service every morning, Ackemann said.

Working together

Caltrain and San Francisco have been squabbling over the environmental report and rail yard plans for months, but agreed recently to work together on a study to determine if there’s a simple way to include the city’s rail yard visions without slowing electrification. The study is expected to take about eight months.

“I think we’ve landed on a way of dealing with this that won’t slow the process,” Caltrain’s Lee said. “At the end of the study, we should have a good idea of all the trade-offs.”

Those trade-offs could include money from the development of the Caltrain yard, which might be used to help pay for the connection to the Transbay Transit Center. And if I-280 and the rail yard were to disappear, it could clear the way for a more direct, quicker and possibly cheaper route to the Transbay center.

“This is a golden opportunity,” said Supervisor Scott Wiener, who represents San Francisco on the regional transportation commission. “The rail yard served its purpose for many years, but it’s no longer the best use for that land.”

Michael Cabanatuan is a San Francisco Chronicle staff writer. E-mail: mcabanatuan@sfchronicle.com Twitter: @ctuan

Article source: http://www.sfgate.com/bayarea/article/Razing-I-280-stub-only-part-of-vision-4227940.php

The company said it has acquired a 0.43 acre, fully entitled development site at 350 Mission Street, a premier location situated at the main entrance of the City’s new transit station for approximately $52 million. KRC expects to invest an additional $200 million developing a high-image glass office tower with floor-to-ceiling windows providing abundant natural light, column-free floor plates offering open-office high-ceiling layouts, and ultra-energy-efficient operating systems—all qualities that are sought after by today’s modern office user.

The Skidmore, Owings Merrill LLP (SOM) design focuses on the creation of an urban living room that is highly engaged with the City’s urban realm animated by a café, a restaurant, and a digital canvas. It reflects state-of-the-art sustainability practices and energy-usage standards which are targeted to earn the building LEED Platinum certification—the first ground-up commercial development property in San Francisco to do so. The design utilizes numerous innovative technologies with the aim of creating a building with a carbon footprint that will be as close to zero as possible. According to Craig Hartman, FAIA, SOM’s Design Partner, this will be one of the most innovative office use towers in the U.S.

Situated at the corner of Mission and Fremont Streets and immediately across the street from the new Transbay Transit Center, the office tower will offer the convenience, high visibility and urban amenities that are attractive to the city’s technology and media companies as well as traditional space users. KRC said it will heighten the impact of the building’s prominent location with a 50-foot, open air entry lobby featuring a 75×40 foot electronic media display wall—the first of its kind in San Francisco. The new building—designed with a side-core configuration, an all-concrete structure and an under-floor air distribution system—will accommodate the high-density usage and flexible and open interiors preferred by knowledge-based, collaborative workforces. In-building amenities include electric vehicle charging stations, a fitness center with showers and lockers, and a first-class bicycle and storage center.

“It is rare that you get the opportunity to build from scratch a cutting-edge urban work environment in one of the nation’s hottest office markets at a cost-basis that makes it highly attractive relative to existing Class A properties. Also, given that there are very few large contiguous spaces available in the market, we have a great opportunity to pre-lease a substantial portion of the building,” said John Kilroy, Jr., president and chief executive officer of KRC. “We intend to make the most of it—for the City and for our tenants.”

Christopher Roeder, David Churton and Ted Davies of Jones Lang LaSalle have been engaged by the company as the listing brokers for the project. “350 Mission will be a truly iconic project and is a pivotal piece of the revolutionary TransBay area redevelopment plan,” said Christopher Roeder, managing director of Jones Lang LaSalle. “Just as the TransBay transit center, in combination with the BART and Caltrain, will forever change how San Franciscans interpret transportation, I believe 350 Mission will change how we interpret office space in this city.”

About Kilroy Realty Corporation. Kilroy Realty Corporation, a member of the SP Small Cap 600 Index, is a real estate investment trust active in the office and industrial submarkets along the West Coast. For over 60 years, KRC has owned, developed, acquired and managed real estate assets, consisting primarily of Class A real estate properties in the coastal regions of Los Angeles, Orange County, San Diego County, the San Francisco Bay Area and greater Seattle. At June 30, 2012, KRC owned approximately 12.2 million rentable square feet of commercial office space and 3.4 million rentable square feet of industrial space.

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 the Company’s 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 the Company’s 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, and with 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 the Company’s business and financial performance, see the factors included under the caption “Risk Factors” in the Company’s annual report on Form 10-K for the year ended December 31, 2011 and its 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. The Company assumes 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 Federal securities laws.

Article source: http://www.heraldonline.com/2012/10/23/4359597/kilroy-realty-corporation-raises.html

Kilroy purchased ‘201 Third Street’ – a 311,455 square foot 12-story office property, for $103.3 million. The building, currently 90% occupied, is strategically located adjacent to the Moscone Center – the largest convention and exhibition complex in the region. In addition, the property offers amenities such as higher finished ceilings, increased natural light and collaborative meeting areas, which are expected to better suit the demands of technology and media tenants of the region.

Furthermore, the property offers superior communication facilities such as the Caltrain – a California commuter rail line on the San Francisco Peninsula and in the Santa Clara Valley (Silicon Valley) in the U.S.; Bay Area Rapid Transit (BART) – a rapid transit system serving the San Francisco Bay Area; and the new Transbay Transit Center – a transportation complex in San Francisco.

With the latest transaction, Kilroy has acquired six office properties year to date in key West Coast submarkets. The aggregate cost of transaction for the purchase of approximately 1.5 million square feet of office space was $516 million. The company is also presently under various stages of negotiation to acquire three more properties for about $163 million.

Kilroy owns, develops and manages a diverse portfolio of office, industrial and multi-purpose real estate properties primarily in the coastal regions of Los Angeles, Orange County, San Diego, greater Seattle and the San Francisco Bay Area. As of June 30, 2011, the company owned 11.5 million rentable square feet of commercial office space and 3.6 million rentable square feet of industrial space.

Kilroy maintains an active multi-year development program focused on the economically dynamic locations characterized by strong long-term demand, limited supply, and high barriers to entry. As such, most of the properties of the company are concentrated in the coastal submarkets of Southern California that offer both a vibrant economic backdrop for businesses and a unique quality of life for their employees.

Currently, we have a ‘Neutral’ recommendation and a Zacks #3 Rank on Kilroy that translates into a short-term ‘Hold’ rating. We also have a ‘Neutral’ recommendation and a Zacks #2 Rank (short-term ‘Buy’) for MPG Office Trust, Inc. (NYSE:MPG), a competitor of Kilroy.

 
KILROY REALTY (KRC): Free Stock Analysis Report
 

Article source: http://www.dailymarkets.com/stock/2011/09/21/kilroy-acquires-ca-office-space-2/

Kilroy purchased ‘201 Third Street’ – a 311,455 square foot 12-story office property, for $103.3 million. The building, currently 90% occupied, is strategically located adjacent to the Moscone Center – the largest convention and exhibition complex in the region. In addition, the property offers amenities such as higher finished ceilings, increased natural light and collaborative meeting areas, which are expected to better suit the demands of technology and media tenants of the region.

Furthermore, the property offers superior communication facilities such as the Caltrain – a California commuter rail line on the San Francisco Peninsula and in the Santa Clara Valley (Silicon Valley) in the U.S.; Bay Area Rapid Transit (BART) – a rapid transit system serving the San Francisco Bay Area; and the new Transbay Transit Center – a transportation complex in San Francisco.

With the latest transaction, Kilroy has acquired six office properties year to date in key West Coast submarkets. The aggregate cost of transaction for the purchase of approximately 1.5 million square feet of office space was $516 million. The company is also presently under various stages of negotiation to acquire three more properties for about $163 million.

Kilroy owns, develops and manages a diverse portfolio of office, industrial and multi-purpose real estate properties primarily in the coastal regions of Los Angeles, Orange County, San Diego, greater Seattle and the San Francisco Bay Area. As of June 30, 2011, the company owned 11.5 million rentable square feet of commercial office space and 3.6 million rentable square feet of industrial space.

Kilroy maintains an active multi-year development program focused on the economically dynamic locations characterized by strong long-term demand, limited supply, and high barriers to entry. As such, most of the properties of the company are concentrated in the coastal submarkets of Southern California that offer both a vibrant economic backdrop for businesses and a unique quality of life for their employees.

Currently, we have a ‘Neutral’ recommendation and a Zacks #3 Rank on Kilroy that translates into a short-term ‘Hold’ rating. We also have a ‘Neutral’ recommendation and a Zacks #2 Rank (short-term ‘Buy’) for MPG Office Trust, Inc. (NYSE:MPG), a competitor of Kilroy.

 
KILROY REALTY (KRC): Free Stock Analysis Report
 

Article source: http://www.dailymarkets.com/stock/2011/09/21/kilroy-acquires-ca-office-space-2/