SAN FRANCISCO — Lt. Gov. Eleni Kounalakis will drop out of the race for California governor, she announced Friday, exiting a crowded contest in which she was among the top Democratic contenders.

Her exit from the governor's race creates an opening for other candidates to build relationships and secure contributions from well-heeled Bay Area donors.

Former Oakland Mayor Libby Schaaf announced this weekend she will give up her bid for state treasurer and endorse Lt. Gov. Eleni Kounalakis for the job after the latter recently dropped out of the governor’s race.