The Oakland acquisition includes two office buildings at 303 and 333 Hegenberger Rd., which is adjacent to the Oakland Airport. The four- and eight-story buildings, respectively, house a combined 196,502 sf. They were built between 1969 and 1971 and are a combined 66% leased. Tenants include the County of Alameda, Bank of America and the federal Transportation Security Administration. The purchase price was $32 million.

The Sacramento property is a four-story, 98,816-sf office building at 1860 Howe Ave. in the Point West area of the state capital. The purchase price was $16 million. The building was built in 1983 and is 68% leased. Tenants include Digital Insight, First American Real Estate and AMPRO Mortgage.

KW Management chairman Barry Schlesinger says the Beverly Hills property is the most significant of the lot. The property sits on the northwest corner of Wilshire Boulevard and Roxbury Drive in Beverly Hills' Golden Triangle. "Since the project was built in 1973, the city has adopted a 45 foot, three-story limit for new office construction, making this building irreplaceable in its current form," Schlesinger says.

The seller of the Beverly Hills property was Broadway Real Estate Partners LLC. The New York-based private real estate investment and management firm paid $37.6 million for the property in June 2004. When Broadway Partners acquired the property in 2004 it was 58% occupied. Occupancy is now at 93%. Major tenants include City National Bank, Synergy Workplaces, Excel World, Inc., John Paul Mitchell and Neiman Marcus.

KW Funds I and II are value-added US investment funds with a total of over $260 million in equity. Investors in the fund include CalPERS, other US-based pension funds, Wachovia, U S Bank and Kennedy Wilson itself.

The two funds jointly acquired the Beverly Hills property, while Fund II acquired the other assets. GE Capital provided financing for the Oakland and Sacramento properties. Wachovia Bank provided financing for the Beverly Hills property.

Instant Insights /

Kennedy Wilson Funds Acquire $100M of Office

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