"JP Morgan made a decision to get out of San Antonio completely," broker Phil Capron tells GlobeSt.com. "We were very interested. San Antonio is a steady industrial market. It's not a lot of up or down. It's very even."

Kennedy-Wilson also has picked up two parcels of adjacent vacant industrial land, seven acres next door to an existing development, for future expansion. Capron says Kennedy-Wilson has already started construction drawings on a second phase on Alamo Downs for an additional 120,000 sf. Ground-breaking is scheduled for the second quarter of this year. A similar project could be in the works for City Park East Distribution.

The Alamo Downs addition will be a mirror image of existing buildings. Kennedy-Wilson will be looking for 18-wheeler distribution tenants such as carpet, medical and bakery suppliers, Capron says.

He estimates existing projects currently are 90% leased. Major tenants include Gemran Medical, which has leased 85,000 sf in City Park East and a German medical supplier, which has leased 80,000 sf in Alamo Downs Distribution.

The Alamo Downs Distribution Center is a 132,565-sf single-story distribution center located on seven acres in northwest San Antonio on NW Loop 410. The 252,900-sf City Park East Distribution Center, comprised of four buildings, is located on 11 acres in northeast San Antonio on NE Loop 410.

Kennedy-Wilson's development group, K-W Austin Inc., is the official purchaser of the JP Morgan properties. Heller Financial is the mezzanine equity lender and Washington Mutual, the permanent lender. Kennedy-Wilson's Capron, Steve Eller, John James, John Vogel and David Alsmeyer handled the transaction.