Academy Tower Sells for $48M
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NORTH HOLLYWOOD, CA-Beverly Hills-based real estate investment and services firm Kennedy Wilson has purchased the Academy Tower, a 175,012-square-foot office building at 5200 Lankershim Blvd. here, for $48 million. The building, which was completed in 1991, is 97% leased to tenants including Endemol, IPPT and Starcom Worldwide.
GlobeSt.com was unable to determine from Kennedy Wilson before deadline the identity of the seller or what the new owner's plans are for the property.
Bank of America Merrill Lynch provided $29 million of financing for the transaction, and Kennedy Wilson invested $19 million of equity. The firm, together with its institutional partners, has acquired approximately $6.8 billion of real estate and real estate-related debt since the beginning of 2010.
“The Academy Tower occupies a premier location in the heart of North Hollywood’s flourishing NoHo Arts District, which is one of Los Angeles’ premier cultural and entertainment centers,” said John Prabhu, president of KW Commercial Investment Group, in a prepared statement. “Along with the property’s landmark physical stature and proximity to some of the world’s most significant production studios, this has generated tremendous tenant demand for the property, and these distinctions have allowed it to contribute to North Hollywood’s stellar vacancy rate as well as the broader Tri Cities’ market-leading YTD absorption.”
In addition to this transaction, KW and its partners have refinanced One Baxter Way, a 354,782-square-foot office building in Thousand Oaks, CA, which the firm and its partners own. Bank of America Merrill Lynch provided $63.5 million of financing for the transaction. The property is 91% leased to Baxter, State Farm and Dignified Transition Solutions.
As GlobeSt.com previously reported, in October Kennedy Wilson acquired Regency Tower Apartments, a 178-unit apartment building in Oakland, CA, for $31 million. At the time, the firm did not disclose the seller to GlobeSt.com, but industry sources unrelated to the deal reported that Essex Apartment Value Fund II had purchased the building located at 333 E. 12th St. from Moison Investment Co. in February 2005 for $21.2 million.
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