NeueHouse to Occupy 93,000 Square Foot Radio and Business Buildings at
Kilroy Realty’s Columbia Square in Hollywood
LOS ANGELES -- July 28, 2014
Kilroy Realty Corporation (NYSE: KRC) announced today that it has entered into
a 93,000 square foot lease agreement with New York City-based NeueHouse, which
will bring its private membership collaborative concept to KRC’s Columbia
Square in the first quarter of 2015. The 15-year transaction is the largest
lease to be signed in Hollywood in more than five years.
NeueHouse will occupy all of the office space in the newly renovated,
historical Radio and Business buildings that anchor Columbia Square, a $400
million, 685,000 square foot mixed-use creative office, retail and residential
development now under construction on the site of CBS’ historic, early 20^th
century broadcast facility on Sunset Boulevard. This is the second location
for NeueHouse, which plans to open 20 collaborative offices around the world
by 2020. The first NeueHouse opened its doors in May 2013 in New York City and
sold out within three months.
Built in 1938 at a cost of $2 million, the distinctive Radio building was the
most expensive broadcasting facility ever built at the time. The former home
to CBS’ West Coast operations, the building included the 25,000 square foot
Columbia Playhouse, from which radio comedies featuring Jack Benny, Burns and
Allen, Edgar Bergen and Red Skelton were broadcast in front of a live
audience. Kilroy Realty has been working closely with the Hollywood Heritage,
Historic Resources Group and the City of Los Angeles to preserve the building,
which was designated an historic-cultural monument in 2009.
“Columbia Square brought together under one roof the great minds in the golden
age of radio to produce some of the most memorable shows in entertainment
history,” said Kilroy Realty Executive Vice President David Simon. “As a
result of our alliance with NeueHouse, that kind of creativity and
collaboration will once again pulse through one of the most important
buildings in Hollywood.”
Conceived by venture capitalists Joshua Abram and Alan Murray, NeueHouse has
pioneered a new model for the collaborative workplace by creating a series of
spaces, experiences and amenities that cater to “solopreneurs” and teams of up
to 20 people in the creative arts, including such fields such as film, design,
publishing, the performing arts and technology.
NeueHouse offers a range of memberships to meet the needs of those who may not
require a dedicated office space but can benefit from NeueHouse’s
interdisciplinary and imaginative cultural experience, as well for rapidly
growing firms. All members have access to NeueHouse’s fully equipped recording
studios, post-production and broadcast facilities, conference rooms, screening
room, and private dining rooms with in-house food service.
As part of the experience, NeueHouse will curate a wide range of events for
its members including evenings with artists, industry leaders, performers and
acclaimed speakers. Programs will range from a weekly conversation series to
film screenings, concerts, readings and private gallery tours.
Kilroy Realty and NeueHouse have formed a strategic alliance and will continue
to work together sourcing other West Coast opportunities.
Carl Muhlstein of Jones Lang LaSalle represented Kilroy Realty in the
transaction. NeueHouse was represented by Steve Kolsky and Neal Golden of
Newmark Knight Frank.
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 (KRC), 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 roster of dynamic,
innovation-driven tenants, including technology, entertainment, digital media
and health care companies.
At March 31, 2014, the company’s stabilized portfolio totaled 13.3 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. 41% of the company’s properties were LEED certified and 55% of the
eligible properties were ENERGY STAR certified. In addition, KRC has
approximately 2.5 million square feet of new office development under
construction with a total estimated investment of approximately $1.5 billion.
More information is available at http://www.kilroyrealty.com.
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.
Kilroy Realty Corporation
Tyler H. Rose
Executive Vice President and Chief Financial Officer
Senior Vice President and Treasurer
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