Kennedy Wilson Fund V acquires 437K sq. ft. office property in Glendale, CA for $144M

Global real estate investment company Kennedy Wilson announced that Kennedy Wilson Real Estate Fund V (“Fund V”) acquired a 100% interest in 400 & 450 N. Brand Blvd (“Brand”), a 437,000 sq. ft. office campus consisting of two Class-A office buildings in Glendale, California, for $144 million.  Fund V invested a total of $50 million of equity, and also secured a five-year interest-only loan for $94 million.

“We are excited to acquire this high-quality asset in a thriving submarket that we know very well” said Nicholas Colonna, President of Commercial Investments and Fund Management.  “Brand offers both a strong initial yield and attractive asset management opportunities within an area that continues to expand, driven by a large growth in urban housing and a strong presence of entertainment and other large corporations.”

Brand is an institutional office campus comprised of two class-A office buildings in Glendale, California.  The high-quality property is currently 88% leased to 21 tenants, including Cigna and the headquarters for DineEquity and Learner’s Digest International. The property is located just minutes from The Americana and Glendale Galleria, which offer 2.5 million square feet of high-end retail and restaurants. Additionally, since 2013, over 4,000 multifamily units have been delivered or have been approved for development. Glendale has transformed into a premier corporate and entertainment hub, and is home to renowned firms such as Walt Disney Imagineering, Whole Foods, Marvel Animation, Dreamworks, and Legal Zoom.

Kennedy Wilson is a 12% investor in Fund V.  Fund V’s portfolio consists of 18 office, multifamily, retail, and residential investments with a gross purchase price of $1.0 billion. With this acquisition, Fund V’s capital is now approximately 90% invested or committed to existing investments.

In a separate transaction, as discussed in the company’s Q1-2017 earnings release, Kennedy Wilson completed the sale of a 195,000 sq. ft. office building in North Hollywood, CA for $69 million, in which the company had a 52.5% ownership interest.

Source: Kennedy Wilson

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