BEVERLY HILLS, Calif.--(BUSINESS WIRE)--Global real estate investment company Kennedy Wilson (NYSE: KW) today 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.
About Kennedy Wilson
Kennedy Wilson (NYSE:KW) is a global real estate investment company. We own, operate, and invest in real estate both on our own and through our investment management platform. We focus on multifamily and commercial properties located in the Western U.S., UK, Ireland, Spain, Italy and Japan. To complement our investment business, the Company also provides real estate services primarily to financial services clients. For further information on Kennedy Wilson, please visit www.kennedywilson.com.
Special Note Regarding Forward-Looking Statements
Statements in this press release that are not historical facts are “forward-looking statements” within the meaning of U.S. federal securities laws. These forward-looking statements are estimates that reflect our management’s current expectations, are based on assumptions that may prove to be inaccurate and involve known and unknown risks. Accordingly, our actual results or performance may differ materially and adversely from the results or performance expressed or implied by these forward-looking statements, including for reasons that are beyond our control. For example, we may not be able to maintain our current acquisition or disposition pace or identify future properties to acquire on terms we consider attractive, and our current property portfolio may not perform as expected. Accordingly, you should not unduly rely on these statements, which speak only as of the date of this press release. We assume no duty to update the forward-looking statements, except as may be required by law.