Kilroy Realty Announces 630,000 Square Foot Lease with DIRECTV with Potential Expansions for up to 720,000 Square Feet for New Headquarters Office Campus
Delmar Nehrenberg and David Alvarado of Allen Matkins Represent Kilroy in Massive Deal
LOS ANGELES, Nov. 7, 2011 -- Kilroy Realty Corporation (NYSE: KRC) announced today that it has signed a fifteen year, nine month lease with DIRECTV Inc. (NASDAQ: DTV), one of the world's leading providers of digital television entertainment services, for DIRECTV's corporate headquarters in El Segundo, immediately adjacent to Los Angeles International Airport. The initial space leased by DIRECTV includes approximately 630,000 square feet of space, which could increase to up to 720,000 square feet over the term of the lease agreement.
Delmar Nehrenberg, a partner in the Century City office of Allen Matkins and co-chair of the firm's construction law group orchestrated the deal on behalf of Kilroy, with the help of David Alvarado, an associate in the firm's Century City office.
"Delmar and David were instrumental in guiding the success of this deal - reported as the largest lease in California in the last decade," said Jeff Hawken, chief operating officer of Kilroy Realty. "The Allen Matkins and Kilroy teams collectively pulled together - once again - to complete a complicated, massive deal efficiently and effectively."
Pursuant to a prior lease, DIRECTV leased approximately 333,000 square feet in two of the three buildings (2240 and 2250 E. Imperial Highway) through July 2014. The new lease extends DIRECTV's lease of these two buildings through September 2027 and provides that DIRECTV will lease over time the remaining approximately 89,000 square feet of space within the two buildings not previously leased by DIRECTV, as the other existing leases expire.
DIRECTV will also lease the entire approximately 299,000 square feet of the third building (2260 E. Imperial Highway), which is currently undergoing redevelopment, through September 2027. Occupancy of this building is projected to occur in the fourth quarter of 2012.
"This transaction demonstrates the quality of our West Coast real estate portfolio and our organization's ability to create a unique and compelling office environment for dynamic and expanding tenants," said John Kilroy, Jr., the company's president and chief executive officer.
Kilroy Realty Corporation, a member of the S&P Small Cap 600 Index, is a real estate investment trust active in premier office and industrial submarkets along the West Coast. For over 60 years, the company has owned, developed, acquired and managed real estate assets primarily in the coastal regions of Los Angeles, Orange County, San Diego, greater Seattle and the San Francisco Bay Area. At September 30, 2011, the company owned 11.6 million rentable square feet of commercial office space and 3.6 million rentable square feet of industrial space. More information is available at http://www.kilroyrealty.com/.
ABOUT ALLEN MATKINS
Allen Matkins, founded in 1977, is a California-based law firm with approximately 220 attorneys in four major metropolitan areas of California: Los Angeles, Orange County, San Francisco and San Diego. The firm's core specialties include real estate, real estate and commercial finance, bankruptcy and creditors' rights, construction, land use, natural resources, environmental, corporate and securities, intellectual property, joint ventures, taxation, employment and labor law, and dispute resolution and litigation in all these matters. For more than 30 years, Allen Matkins has helped clients turn opportunity and challenge into success by providing practical advice, innovative solutions and valuable business opportunities. When clients' challenges require experienced trial counsel, Allen Matkins has a proven track record of successful litigation before juries, judges and arbitrators.