GLENDALE, CA—Kennedy Wilson Real Estate Fund V recently acquired a 100% interest in 400 & 450 N. Brand Blvd, a 437,000-square-foot office campus consisting of two Class-A office buildings in Glendale, California, for $144 million. Fund V invested a total of $50 million of equity, and also secured a five-year interest-only loan for $94 million.
“We are excited to acquire this high-quality asset in a thriving submarket that we know very well” says Nicholas Colonna, president of commercial investments and fund management, in a prepared statement. “Brand offers both a strong initial yield and attractive asset management opportunities within an area that continues to expand, driven by a large growth in urban housing and a strong presence of entertainment and other large corporations.”
Brand is an institutional office campus comprised of two class-A office buildings in Glendale, California. The high-quality property is currently 88% leased to 21 tenants, including Cigna and the headquarters for DineEquity and Learner's Digest International.
The property is located just minutes from The Americana and Glendale Galleria, which offer 2.5 million square feet of high-end retail and restaurants. Additionally, since 2013, more than 4,000 multifamily units have been delivered or have been approved for development. Glendale has transformed into a premier corporate and entertainment hub, and is home to renowned firms such as Walt Disney Imagineering, Whole Foods, Marvel Animation, Dreamworks, and Legal Zoom.
Kennedy Wilson is a 12% investor in Fund V. Fund V's portfolio consists of 18 office, multifamily, retail, and residential investments with a gross purchase price of $1.0 billion. With this acquisition, Fund V's capital is now approximately 90% invested or committed to existing investments.
JLL's EVP, Tom Bohlinger and SVP Jon Lange represented the seller and buyer. JLL's managing director Brian Halpern and senior associate Alex Kane led the team on the financing.
In a separate transaction, as discussed in the company's Q1-2017 earnings release, Kennedy Wilson completed the sale of a 195,000-square-foot office building in North Hollywood, CA for $69 million, in which the company had a 52.5% ownership interest.
Lee Shapiro, EVP at Kennedy Wilson, recently talked with GlobeSt.com about emerging neighborhoods in the Los Angeles market. And while Glendale isn't one of them, Shapiro noted that Hollywood, Downtown Los Angeles, Culver City, and Koreatown are emerging markets in Los Angeles, and most have pushed their developments in the last few years.
“I believe that when Los Angeles is compared to other submarkets nationally and internationally, L.A.'s price point for the commercial world and the rental structures are lower than many cities internationally, as compared to the population density and the income levels of the city,” he told GlobeSt.com. “A lot of foreign capital has viewed Los Angeles as a real opportunity for investment. In this cycle, we have seen a lot of interest from foreign capital come into the market. That has pushed out markets and created competition for domestic capital that is trying to acquire property.”
GLENDALE, CA—Kennedy Wilson Real Estate Fund V recently acquired a 100% interest in 400 & 450 N. Brand Blvd, a 437,000-square-foot office campus consisting of two Class-A office buildings in Glendale, California, for $144 million. Fund V invested a total of $50 million of equity, and also secured a five-year interest-only loan for $94 million.
“We are excited to acquire this high-quality asset in a thriving submarket that we know very well” says Nicholas Colonna, president of commercial investments and fund management, in a prepared statement. “Brand offers both a strong initial yield and attractive asset management opportunities within an area that continues to expand, driven by a large growth in urban housing and a strong presence of entertainment and other large corporations.”
Brand is an institutional office campus comprised of two class-A office buildings in Glendale, California. The high-quality property is currently 88% leased to 21 tenants, including Cigna and the headquarters for DineEquity and Learner's Digest International.
The property is located just minutes from The Americana and Glendale Galleria, which offer 2.5 million square feet of high-end retail and restaurants. Additionally, since 2013, more than 4,000 multifamily units have been delivered or have been approved for development. Glendale has transformed into a premier corporate and entertainment hub, and is home to renowned firms such as Walt Disney Imagineering, Whole Foods, Marvel Animation, Dreamworks, and Legal Zoom.
Kennedy Wilson is a 12% investor in Fund V. Fund V's portfolio consists of 18 office, multifamily, retail, and residential investments with a gross purchase price of $1.0 billion. With this acquisition, Fund V's capital is now approximately 90% invested or committed to existing investments.
JLL's EVP, Tom Bohlinger and SVP Jon Lange represented the seller and buyer. JLL's managing director Brian Halpern and senior associate Alex Kane led the team on the financing.
In a separate transaction, as discussed in the company's Q1-2017 earnings release, Kennedy Wilson completed the sale of a 195,000-square-foot office building in North Hollywood, CA for $69 million, in which the company had a 52.5% ownership interest.
Lee Shapiro, EVP at Kennedy Wilson, recently talked with GlobeSt.com about emerging neighborhoods in the Los Angeles market. And while Glendale isn't one of them, Shapiro noted that Hollywood, Downtown Los Angeles, Culver City, and Koreatown are emerging markets in Los Angeles, and most have pushed their developments in the last few years.
“I believe that when Los Angeles is compared to other submarkets nationally and internationally, L.A.'s price point for the commercial world and the rental structures are lower than many cities internationally, as compared to the population density and the income levels of the city,” he told GlobeSt.com. “A lot of foreign capital has viewed Los Angeles as a real opportunity for investment. In this cycle, we have seen a lot of interest from foreign capital come into the market. That has pushed out markets and created competition for domestic capital that is trying to acquire property.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
