The deal, which follows Arden's recent sale of aportfolio of Los Angeles office buildings to Santa Monica-basedDouglas Emmett for $610 million, gives the new owners threebuildings situated on a single block in Downtown Burbank. The blockis bounded by Glenoaks Boulevard, Magnolia Boulevard, Palm Avenueand Third Street, within walking distance of the Burbank TownCenter and other amenities.

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The new ownership "plans to take advantage of upside potentialin this supply-constrained market," according to Barry Schlesinger,chairman of the Kennedy Wilson Fund Management Group. The newownership is a joint venture of Kennedy Wilson-sponsored funds KWProperty Fund II and KW Property Fund III.

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Kennedy Wilson sees "great lease-up potential" at all of thebuildings because a significant portion of in-place rents is belowmarket. In addition, there is substantial lease expiration in thenext three years.

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The 303 N. Glenoaks property is a 10-story building totaling176,813 sf that was built in 1983 and 1984, along with a six-storyparking structure, and was renovated in 1996. The property iscurrently at 98.9 % occupancy.

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The 333 N. Glenoaks building totals 86,703 sf in six stories.Built in 1978, it includes a parking structure that is alsoavailable to tenants of 300 E. Magnolia. The property is currentlyat 97.9 % occupancy.

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The Burbank Executive Plaza is a six-story building totaling63,899 sf and was built in 1984. It is at 60.5% occupancy.

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GE Capital provided acquisition financing.

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