Kennedy Wilson has purchased a portfolio of five Los Angeles-area office buildings for $144 million. The Los Angeles-based real estate investment firm will have an ownership stake of roughly 37 percent in the five properties. The remaining equity stake will be owned by the firm’s latest opportunity fund, Kennedy Wilson Real Estate Fund IV, as well as Fairfax Financial and The LeFrak Organization.
According to Mary Ricks, executive vice chair of Kennedy Wilson, the properties are part of “the firm's first significant office acquisition this cycle.” She added that the firm was “able to source this transaction off-market through an existing long-term relationship.”
Although Kennedy Wilson would not disclose the seller or addresses of the individual properties, the buildings are located in various submarkets of Los Angeles, including Beverly Hills, Miracle Mile and Encino. The acquisition adds roughly 700,000 square feet of office space to the firm's portfolio and increases its total assets under management to $9.8 billion.
The acquisition of the first of the five properties closed yesterday, with the remaining four expected to close separately over the next two months.