Dealmaker: Kennedy Wilson Acquires Two Office Buildings for $144M

Kennedy Wilson, Beverly Hills, Calif., acquired 400 and 450 North Brand Blvd., two Class A office buildings in Glendale, Calif., for $144 million.

The San Fernando Valley Business Journal reported that seller MetLife, New York, paid $117 million for the properties in 2004.

Kennedy Wilson Fund V invested $50 million in equity and secured a $94 million five-year interest-only loan to fund the purchase.

“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,” said Nicholas Colonna, Kennedy Wilson President of Commercial Investments and Fund Management.

Nearby demand drivers include The Americana and Glendale Galleria, which together include 2.5 million square feet of Class A retail and restaurants. More than 4,000 multifamily units have delivered or been approved for development in the area since 2013. Nearby corporate headquarters include Walt Disney Imagineering, Marvel Animation, Dreamworks and Legal Zoom.

The 437,000-square-foot office campus property is currently 88 percent leased to 21 tenants including Cigna and DineEquity’s corporate headquarters.

In two other recent transactions Kennedy Wilson sold a 195,000-square-foot office building in North Hollywood, Calif., for $69 million. The company held a 52.5 percent ownership interest in the property. And in April the firm sold a 28-acre residential southern California land parcel it had acquired in 2014. The company received $29 million for the non-income producing asset compared to its $21 million purchase price.