Kilroy Plans on Medical Development

SORRENTO MESA, CA-Just one month after making a major office acquisition in northern San Diego, Kilroy Realty Corp. will make another foray into the area. The Los Angeles-based REIT, which also has an office in San Diego, will develop a 60,000-sf medical office property. Specs on the space call for a three-story building being developed on a 3.4-acre site at the northeast corner of Mira Mira Boulevard and Vista Sorrento Parkway. Kilroy has named the project Sorrento Gateway Medical Plaza. The project has set a completion date of mid-2006. The office will provide both medical offices and an outpatient care facility. In all, Kilroy has 20 acres of land zoned for medical office space in the metro area and as demand dictates, will develop the balance of the land. John Garrigan of CB Richard Ellis is marketing Sorrento Gateway Medical Plaza office space for lease. The property is located near Scripps Health, USCD Medical Center, Kaiser and Sharp Rees-Steely medical centers. In December, Kilroy acquired Legacy Sabre Springs office campus for $98 million. Kilroy purchased the property from a joint venture between Legacy Partners and VEF Advisors. “The development component fits exactly with our value-added approach,” says John B. Kilroy, Jr., president and CEO of Kilroy Realty Corp. Kilroy adds that further development of projects such as Kilroy Sabre Springs is a major component in enhancing the company’s overall returns. Located at the intersection of Interstate 15 and SR-56 in North San Diego, the acquisition strengthens Kilroy’s market presence along the SR-56 corridor, according to a company executive. “We are the largest office landlord in North San Diego today and this acquisition adds to that position in North San Diego County,” says Tyler Rose, senior vice president and treasurer of Kilroy. The firm owns some 7.4 million sf of office space, along with another 4.6 million sf of industrial space. Rose tells Globest.com that the acquisition was a “strategic purchase” that positions Kilroy over a prominent stretch of property in North San Diego County. Rose says the targeted area is a three-million-sf market and Kilroy “now owns one million sf of it.”