(RealShare Orange County convenes at the Hyatt Regency, Irvine, August 16.)
ANAHEIM, CA-Kennedy Wilson, an international real estate investment-services firm based in Beverly Hills, and its partners have acquired Stadium Gateway here for $56 million. The firm tells GlobeSt.com that the seller was MPG Office Trust and that the class-A office building was completed in 2001.
The six-story, 272,826-square-foot building located at 1900 State College Blvd. is 70% occupied, and the firm also tells GlobeSt.com that it plans to market the property’s vacant space for lease in order to stabilize the asset. The purchase increases Kennedy Wilson’s total office portfolio to 3.6 million square feet.
“Stadium Gateway is widely considered the best office building in the Central Orange County submarket,” said John Prabhu, president of KW Commercial Investment Group, in a prepared statement. “With the building’s occupancy currently at 70%, we believe this investment is an excellent value-add opportunity.”
Prabhu added that Orange County has had eight consecutive quarters of positive absorption including more than 1.9 million square feet of absorption in 2011. “We are strongly optimistic that this encouraging momentum and steady recovery, in concert with Stadium Gateway’s intrinsic benefits and desirable characteristics, will combine nicely in our efforts to stabilize the asset.”
Situated in the Central Orange County submarket, the property has direct access to the region’s extensive freeway network and has one of the highest parking ratios of any of the submarket’s 20 class-A buildings. The “H”-shaped building also has extremely flexible floorplates, giving it a competitive advantage to draw tenants whom other buildings cannot accommodate.
Kennedy Wilson, together with its institutional partners, has acquired approximately $6.6 billion of real estate and real estate-secured debt through joint venture and consolidated investments since the beginning of 2010, including deals currently under contract.
As GlobeSt.com previously reported, earlier this month Kennedy Wilson and its partners acquired Via Verde, a 277-unit apartment complex in Huntington Beach, CA, for $65.7 million. The firm placed a $47.8-million 10-year loan on the property from Freddie Mac at 3.59%.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
