BEVERLY HILLS, CA-Locally based Kennedy Wilson has acquired amajority interest in two office buildings totaling 98,928 squarefeet in Carlsbad and has purchased a 17.3-acre residential propertyin Hawaii that includes 63 finished lots and six completed singlefamily homes on a total of 17.3 acres situated on an 18-holechampionship golf course.

|

The office buildings, called One Carlsbad Research Center, areat 2382 and 2386 Faraday Ave. The minority interest in the projectis held by Kennedy Wilson’s Property Fund I.

|

As part of the transaction, Kennedy Wilson recapitalized theproperty and extended the loan on the project for an additionalfive years. John Prabhu, president of Kennedy Wilson CommercialInvestment Group, says that the new capital structure will allowthe ownership to aggressively pursue all leasing opportunities inthe market. “The buildings are in close proximity to affluentresidential communities, which will allow us to take advantage oftenant expansions priced out of areas such as Del Mar Heights andLa Jolla,” Prabhu says.

|

Kennedy Wilson chairman and CEO William McMorrow notes that thisis “the first office building acquisition that the company hascompleted in the current real estate cycle.” He cites reports ofthe $1.4 trillion of debt in the commercial real estate sectorcoming due by the end of 2014, saying this will create investmentopportunities in all real estate sectors but more specifically,office properties. “We intend to be a major investor in theseopportunities,” McMorrow says.

|

In the Hawaii transaction, Kennedy Wilson bought Wai’nani atKiahuna, a residential subdivision in the resort area of PoipuBeach on the island of Kauai. The acquisition was completed throughKennedy Wilson’s Property Fund III, a value-added/opportunisticinvestment vehicle that targets real estate in the western US andHawaii.

|

Mary Ricks, executive vice chair of Kennedy Wilson, notes thatthe company has been investing in Hawaii real estate since themid-1990s, acquiring more than 7,000 acres of land and has beeninvolved in numerous projects throughout the islands. “We havealways liked the fundamentals of investing in Hawaii real estatesuch as high barriers to entry and an extremely difficultentitlement process,” Ricks says.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.