Kennedy Wilson takes California office portfolio for $94m

The property investment firm has acquired a portfolio of three Burbank, California office buildings located in the state’s media district.

Kennedy Wilson fund management group, through its sponsored funds KW Property Fund II and KW Property Fund III have acquired three office buildings in Burbank, California for $94.1 million (€60.2 million).

The properties comprise 303 and 333 North Glenoaks and the Burbank Executive Plaza in downtown Burbank, known as the “media capital of the world” due to the large number of media and entertainment companies headquartered in the area.

The 303 North Glenoaks Avenue building, totaling ten stories, includes a six-story parking structure and has a 99 percent occupancy. 333 North Glenoaks Avenue, comprising six stories and 98 percent occupied, totals 86,703 square feet built and also includes parking amenities. 300 East Magnolia, also known as Burbank Executive Plaza, comprises six stories with 63,899 square feet and is currently at 60 percent occupancy.

The office properties count tenants such as Turner Broadcasting, Universal Music and Video and BDC Travel. The buildings have “great lease-up potential” with a large portion of rents below market and “substantial lease expiration in the first 3 years of ownership,” according to a statement issued by the firm. Fund management group chairman Barry Schlesinger said it plans to “take advantage of this upside potential in this supply-constrained market.”

Kennedy Wilson, founded in 1977, is based in Beverly Hills, California with offices throughout the US and Japan. Its fund management division, KW Fund Management, focuses on the acquisition, management, repositioning and disposition of real estate assets.