BEVERLY HILLS, CA-Locally based Kennedy Wilson continues its activity on a number of fronts in the commercial real estate world, having recently acquired a portfolio of loans with an unpaid balance of $82.5 million and having completed more than $11 million of retail leases.

The loan portfolio, which Kennedy Wilson acquired in partnership with other investors, consists of 19 loans secured by real estate located primarily in Southern California. The transaction brings the company’s total note acquisitions over the past 12 months to $653 million of unpaid principal balance. The aggregate purchase price on these notes totals $402 million, or 62% of the unpaid principal balance.

Mary Ricks, executive vice chair of Kennedy Wilson, commented in an announcement regarding the portfolio acquisition: "Since relaunching our debt buying business less than a year ago, we have made great strides in note acquisitions and settlements so far in this cycle. Our progress on the loan collections is going well, and we expect to generate significant profits through additional recoveries over the next 18 months.”

The average leverage utilized on the purchases is 63%, and Kennedy Wilson’s share of the equity in the notes purchased over the past 12 months is approximately 34%. In addition to its 34% ownership of the notes, the company, in most cases, also has a promoted interest in the profits generated from these investments.

In its recent leasing activity, the company’s retail brokerage group completed two major lease transactions in the Los Angeles area. Roger Dunn Golf signed a 12,000-square-foot lease at NoHo 14 in North Hollywood and Korea-based Tom N Toms Coffee will establish its flagship US location at Solair in Koreatown.

Valued at over $3.8 million, the Roger Dunn lease moves the Los Angeles-based golf store out of its original location of over 30 years. The company is planning to be open first quarter 2011 in the new space.

According to Ed Sachse, senior managing director of Kennedy Wilson Properties Group, the commercial space at NoHo 14 located at 5445 Lankershim Blvd. in North Hollywood was fully leased in just four months. “We are ending the fourth quarter with good results and feel optimistic about the outlook for 2011,” Sachse said.