BEVERLY HILLS, Calif.--(BUSINESS WIRE)--Global real estate investment company Kennedy Wilson (NYSE: KW) today announced that the company acquired 90 East, a 573,000 sq. ft. office campus consisting of three class-A office buildings in greater Bellevue, Washington, for $153 million in an off-market transaction. Kennedy Wilson invested $76 million of equity, and also secured a 10-year interest-only loan for $77 million at a fixed-rate of 3.85%.
“We are pleased to expand our presence in Washington by acquiring this high-quality office asset below replacement cost in an excellent submarket,” said Matt Windisch, Executive Vice President of Kennedy Wilson. “With two investment grade companies fully occupying the building, 90 East offers a strong initial cash flow yield and the potential to earn attractive long-term risk adjusted returns for the company.”
Built between 1999 and 2001 on a 20-acre site, 90 East is an institutional quality office campus in Issaquah, Washington which is 100% leased to Microsoft and Costco with a weighted-average lease term of 5.3 years. The property is 10 miles from downtown Bellevue and within close proximity to many Fortune 500 companies, including Costco, Microsoft, Amazon, Starbucks, Nordstrom, and Expedia. During the last 12 months, the property produced approximately $13 million in net operating income.
Kennedy Wilson now has an ownership interest in 1.4 million sq. ft. of office and 10,430 multifamily units in the State of Washington.
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. Capitalization rates and historical net operating income represent historical performance and are not a guarantee of future performance. 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.
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