Kennedy Wilson and Partner Acquire Class A Office Buildings in Northern California
International real estate investment and services firm Kennedy
Wilson (NYSE: KW) today announced the acquisition of The
Pointe at Redwood Shores, two Class A, two-story office buildings
totaling 89,455 rentable square feet, located in Redwood City,
California. The company and its partner purchased the property for
approximately $22 million, all cash. Kennedy Wilson invested $11 million
of equity in the transaction, with debt financing expected to be
arranged post-closing.
The Pointe at Redwood Shores is situated within the Redwood Shores
submarket of Redwood City, located on the San Francisco Bay Peninsula in
San Mateo County. Set between San Francisco and Silicon Valley, the
Peninsula has enjoyed strong demand for office space from technology
industry tenants who have led the recovery of the nationwide office
market.
John Prabhu, president of KW Commercial Investment Group, commented,
“Strong post-crisis leasing activity has driven vacancies in Palo Alto
to 4.7% and in Mountain View to 3.0%. With these prime submarkets
running out of space and increasing demand, tenants have found Redwood
City and other Peninsula submarkets as an alternative location with
lower occupancy costs. Since the beginning of 2010, vacancy in Redwood
Shores has dropped from 15% to under 6% in the first quarter of this
year, with market rents rising.”
Built in 2000, The Pointe offers an unobstructed view of the bay on the
north, east and south sides, and the area largely consists of newly
built office buildings and affluent residential communities. The
property is 80% leased to five tenants, and Kennedy Wilson will employ a
value-added strategy to lease up the remaining vacancy at the property.
Kennedy Wilson, together with its institutional partners, has acquired
$1.1 billion of real estate and real estate related debt since the
beginning of this year. This total includes 1,253 apartment units in the
Western U.S., 1.2 million square feet of commercial assets in the
Western U.S. and in the U.K. and $771 million in unpaid principal
balance of loans secured by real estate, primarily in the U.K.
About Kennedy Wilson
Founded in 1977, Kennedy Wilson is an international real estate
investment and services company headquartered in Beverly Hills, CA with
24 offices in the U.S., U.K., Ireland, Spain and Japan. The company
offers a comprehensive array of real estate services including auction,
conventional sales, property services, research and investment
management. Through its fund management and separate account businesses,
Kennedy Wilson is a strategic investor of real estate investments in the
U.S., U.K., Ireland and Japan. For further information on Kennedy
Wilson, please visit www.kennedywilson.com.