BEVERLY HILLS, CA-Kennedy Wilson has closed on the first building of a five-building portfolio of Los Angeles area office buildings totaling more than 700,000 square feet that it is acquiring for $143.5 million. Kennedy Wilson’s stake in the properties is 37%, with the remaining equity owned by Kennedy Wilson Real Estate Fund IV, Fairfax Financial and the LeFrak Organization.

The acquisition is a direct, off-market deal, with the sales of the remaining buildings in the portfolio expected to close over the next 60 days. The Beverly Hills-based company, which says this increases its assets under management to $9.8 billion, declined to name the seller. The buildings are located in various submarkets of Los Angeles, including Beverly Hills, Miracle Mile and Encino.

Mary Ricks, executive vice chair of Kennedy Wilson, commented in an announcement regarding the deal: “These assets are premier properties in highly desirable locations. This is the company’s first significant office acquisition in this cycle, and we were able to source this transaction off-market through an existing long-term relationship.”