Beverly Hills-based Kennedy Wilson's new asset is a 16-story office tower adjacent to Beverly Hills on the southwest corner of Wilshire Boulevard and Fairfax Avenue. The company acquired it through its sponsored funds, KW Property Fund II and KW Property Fund III.
Kennedy Wilson calls the building "an irreplaceable asset due to the lack of developable land in the Mid-Wilshire Submarket" where it is located. The building is adjacent to the new Broad Contemporary Museum and Peterson Automotive Museum.
Built in 1986, the building is 85% occupied by a tenant roster including CBS, Ovation, World Link, Fulfillment Fund, Idea Asylum and City National Bank.
The new owner foresees "significant upside potential in this supply-constrained market" because a considerable portion of in-place rents are below market and there are substantial lease expirations in the early years of ownership. Kennedy Wilson intends to reposition the asset through a comprehensive building modernization program. Acquisition financing was provided by General Electric Capital Corp., but sales price was not disclosed. The building sold about two years ago four about $46 million.
 10351 Santa Monica Blvd. |
The joint venture of Cambra and Angelo Gordon has closed a number of deals in Southern California, including its sale in April of a 63,276-sf medical office building at 120 S. Spalding Dr. in Beverly Hills to New York City's LeFrak Organization for $55 million. That sale, at $869 per sf, marked one of the highest prices per sf ever paid for office space in the L.A. market.
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