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Kilroy Sabre Springs campus nears completion

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Construction of the third and final building that will consist of the three-structure, 444,939-square-foot Kilroy Sabre Springs office campus near the intersection of Interstate 15 and state Route 56 is nearing completion.

The six story, 148,313-square-foot office building will be completed by the end of November, according to Kevin Horst, project manager for Reno Contracting, which is serving as the general contractor.

Site work, including landscaping and installation of utilities, will continue until February 2008.

The third and final building of the Kilroy Sabre Springs office campus will feature energy-efficient glass products, heat-resistant exterior finishes and interior modular walls.

Construction of the building has included the erection of a six-level, movement-resisting frame structure, which consists of 1,100 tons of structural steel topped out at 82 feet above grade.

According to Horst, the new building will differentiate itself from the campus' other two structures by receiving LEED certification, as the building will feature recent construction industry technological advances such as energy-efficient glass products, heat-resistant exterior finishes and interior modular walls.

Extra costs associated with attempting to achieve LEED certification were fairly insignificant, Horst said.

In addition to the LEED aspects of the project, the building will feature technologically advanced amenities as well as fiber optics from two carriers for reliability and redundancy. The entire three-building office development is Wi-Fi ready throughout and Wi-Fi active in the common areas.

Also nearing completion on Kilroy Realty Corp.'s (NYSE: KRC) office campus is a 261,132-square-foot, 685-space pre-cast parking structure, which will be finished by late September or early October, Horst said.

Drainage and major excavation, including blasting of substantial rock formations, was required to construct two sub-ground levels, which substantially increased the project's total cost, Horst said. As the supply of developable land in San Diego County has shrunk development sites are naturally becoming more constrained, he added.

In total, the final building and parking structure cost a combined $30 million.

Architects Hanna Gabriel Wells designed the final building. Subcontractors involved on the project included:

Pacific Southwest Structures, Hanson Pipe & Precast, H&K Concrete, Bergelectric, California Comfort Systems, Pacific Coast Steel and South Bay Welding.

Jeb Bakke, Mike Corbosiero and Doug Lozier of CB Richard Ellis (NYSE: CBG) are the exclusive leasing team for Kilroy Sabre Springs.

Originally known as Legacy Sabre Springs, the Kilroy campus currently includes two six-story Class-A office buildings totaling 296,626 square feet that are leased to tenants including Bank of America, IntelliDOT, Hospira, Countrywide Financial, Bridgepoint Education and the Raymond J. Lucia Cos.

The buildings at 13500 and 13520 Evening Creek Drive were constructed by Legacy Sabre Springs LLC, a venture of Legacy Partners and VEF Advisors. Reno served as the general contractor for the construction of both the buildings.

Kilroy acquired the two buildings and a lot entitled to the third building in late 2004 for $98 million.

When completed, the Class A office development will total three six-story buildings with two massive parking structures. According to Mike Nelson, Kilroy's senior asset manager, the location, construction elements and user-friendly amenities are key factors in drawing Class A tenants to this new and rapidly growing submarket.

Kilroy currently manages a portfolio of more than 12.6 million square feet and has approximately 1.2 million square feet of new projects in San Diego County including corporate campuses for Intuit (Nasdaq: INTU), Cardinal Health and Scripps Health.

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