LOS ANGELES, CA-Holliday Fenoglio Fowler LP has arranged $124.9 million in refinancing for a four-building portfolio in downtown Burbank and LA’s Miracle Mile, on behalf of the owner, Kennedy Wilson. The refinancing includes $109.9 in senior debt provided by GE Capital Real Estate, plus $20 million in mezzanine debt from an undisclosed institutional investor.

The loans have three-year terms. The refinancing replaces loans that the owner used to buy the portfolio in 2007.

The new loan package takes advantage of current low interest rates, Mark Wintner, HFF managing director tells GlobeSt.com. “We were able to restructure a high-leverage loan to Kennedy Wilson that was acquired in 2007, when the market was aggressive and prices were expensive,” he says.  

 The buildings covered by the loan are high-profile properties, Mintner adds. “These are the three nicest, premier office buildings in downtown Burbank,” he says. The fourth building is 6100 Wilshire, a high-rise from the early 1980s. “It’s a good, solid building that are attracted a lot of entertainment-related tenants in recent years.”

Properties in the portfolio include 303 and 333 N. Glenoaks Blvd. and 300 E. Magnolia Blvd., all in Burbank, and 6100 Wilshire Blvd. in Los Angeles.  Tenants in those buildings include Turner Broadcasting, MTV Networks, Rich Crest Animation, the University of Redlands and the US Department of Justice.

The portfolio contains a total 543,162 square feet, and is currently 16% vacant. 

Representing Kennedy Wilson in negotiations with lenders were Wintner and senior managing director Paul Brindley.

Kennedy Wilson has been in the news a lot lately. As GlobeSt.com previously reported, the company just recently revealed plans to issue 6 million shares of common stock. BofA Merrill Lynch and Deutsche Bank Securities will act as “book running managers,” or the entities that control stock purchase orders from investors. Kennedy-Wilson plans to use the capital infusion to “repay borrowings under its revolving credit facility and for working capital and general corporate purposes, including future acquisitions and co-investments,” according to a statement released by the company.