The head of Kilroy Realty Corp. on Thursday said his company will break ground later this quarter on 333 Dexter, a two-building mixed-use office complex at the north portal of the future Highway 99 tunnel.
Los Angeles-based Kilroy didn't announce any tenants for the 12-story buildings in the South Lake Union neighborhood, where less than 2 percent of the office space is vacant. The buildings total around 660,000 square feet of office and retail space.
Kilroy Realty Corp. on Thursday said construction will soon start on 333 Dexter, a… more
"Given the strength of the Seattle market, we couldn't be better positioned to start the project," Kilroy Realty Corp. Chairman, President and CEO John Kilroysaid on an earnings call.
The project is named for its address, 333 Dexter Ave. N., where KING 5 operated for decades until moving to the Sodo district. The total estimated investment of the project – Kilroy's first ground-up development in Seattle – is $385 million, according to a Securities and Exchange Commission filing by Kilroy (NYSE: KRC).
Kilroy wouldn't discuss potential tenants.
"We deal with a lot of people in NDA (non-disclosure agreements) and so forth, so we can't get into specifics. Let's just say, we think we are uniquely and ideally positioned to have a home run on that project," he said.
In addition to Amazon, Facebook and Google are expanding in South Lake Union. Facebook recently moved into a new building and has leased two more properties. Construction is underway on Google's 607,000-square-foot campus by Lake Union Park.
Kilroy touted the location of 333 Dexter at the tunnel entrance. Drilling of the 1.7-mile long tunnel was recently completed, and crews are now building the roadways. The tunnel is scheduled to open in 2019. This will lead to the eventual stitching back together of the street grid, which is now split by the Highway 99 surface route. What is now an eight-block trip from 333 Dexter to the Space Needle will become three blocks.
In the Puget Sound region, Kilroy's portfolio totals nearly 2.1 million square feet. The company said 97 percent of that space is leased.