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.

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.

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.