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BURBANK, CA-Two funds sponsored by Beverly Hills-based Kennedy Wilson have acquired three office buildings totaling 327,415 sf from West Los Angeles-based Arden Realty for $94.1 million. The properties are 303 N. Glenoaks Blvd., 333 N. Glenoaks Blvd. and 300 E. Magnolia Blvd., also known as Burbank Executive Plaza.

The deal, which follows Arden’s recent sale of a portfolio of Los Angeles office buildings to Santa Monica-based Douglas Emmett for $610 million, gives the new owners three buildings situated on a single block in Downtown Burbank. The block is bounded by Glenoaks Boulevard, Magnolia Boulevard, Palm Avenue and Third Street, within walking distance of the Burbank Town Center and other amenities.

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

Kennedy Wilson sees “great lease-up potential” at all of the buildings because a significant portion of in-place rents is below market. In addition, there is substantial lease expiration in the next three years.

The 303 N. Glenoaks property is a 10-story building totaling 176,813 sf that was built in 1983 and 1984, along with a six-story parking structure, and was renovated in 1996. The property is currently at 98.9 % occupancy.

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

The Burbank Executive Plaza is a six-story building totaling 63,899 sf and was built in 1984. It is at 60.5% occupancy.

GE Capital provided acquisition financing.

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