Kilroy Realty Corporation (NYSE: KRC) said Monday it signed a 10-year lease agreement with Intuit Inc. (Nasdaq: INTU) for 365,000 rentable square feet at Santa Fe Summit, a new master-planned, four-building, 466,000 rentable square-foot office campus KRC plans to build on land it owns along the new State Route 56 freeway east of Del Mar in San Diego, California.
Intuit has agreed to lease three of the four buildings comprising 78% of the square footage planned for the new office campus and will take occupancy upon their completion in the fall of 2007. The agreement also provides Intuit with the option to expand its occupancy to include the fourth building.
The software pioneer, a KRC tenant for more than seven years in San Diego and more recently in Calabasas, plans to use the new office campus as its regional headquarters. With the addition of Santa Fe Summit, KRC's San Diego portfolio will grow to more than four million square feet of office space, expanding the REIT's already significant presence in one of the strongest commercial real estate markets in the United States today.
Intuit's existing San Diego lease with KRC for 212,000 square feet in two buildings in the Governor Park submarket expires in 2007, and includes certain extension rights exercisable at Intuit's option.
Santa Fe Summit is located along the recently completed, 7.5-mile State Route 56 freeway that connects San Diego's two major north-south arteries - Interstate-5 and Interstate-15. SR-56 links San Diego County's growing residential communities and employment centers to the east with the major business submarkets of Del Mar, Sorrento Mesa and University Towne Center to the west. Kilroy Realty is the largest owner and developer of office properties in San Diego and holds a leading position along SR-56 with over 1.3 million square feet of existing space and land on which the company can build approximately 143,000 square feet of additional office space, in addition to the 466,000 square foot Santa Fe Summit project.