Peregrine Rejects Kilroy Leases

Kilroy says Peregrine, which filed for Chapter 11 bankruptcy protection last weekend, leases four office buildings in the Del Mar submarket of San Diego totaling approximately 423,900 sf under four separate leases. It previously leased a fifth building but surrendered the lease to Kilroy Realty in June.

The three leases that Peregrine filed to reject include the one that it had already surrendered. In the two leases that Peregrine did not file to reject, which total nearly 242,000 sf, the software company continues to sublease approximately 58% of one of the buildings to other tenants. Kilroy filings with the Securities and Exchange Commission say the REIT has been monitoring Peregrine's financial troubles and has already recorded charges to earnings in response to the eroding situation at Peregrine.