International real estate investment and services firm Kennedy
Wilson (NYSE:KW) today announced that the company and its
partners acquired 245 S. Los Robles, a 175,792 square foot Class A
office project in Pasadena, California, for $39 million. The total
equity invested in the transaction was $16 million, 5% of which was
contributed by Kennedy Wilson. Additionally, the company secured a $23
million loan on the property from JPMorgan Chase.
“We are delighted to acquire a rare value add opportunity in Pasadena,
one of Los Angeles County’s most sought after office submarkets,” said
John Prabhu, president of Kennedy Wilson’s Commercial Investment Group.
“We are optimistic on the growth of Pasadena and its diverse economic
drivers, including its burgeoning tech industry.”
245 S. Los Robles consists of an eight-story Class A office tower
totaling approximately 130,000 square feet, a two-story annex building
totaling almost 46,000 square feet, a four-level parking structure and
an approximately one acre surface parking lot. Collectively, the project
is situated on a 3.5 acre site, part of which is zoned for multifamily
development, and encompasses nearly an entire city block in the heart of
Pasadena. The project is located near the mixed-use Paseo Colorado
outdoor lifestyle center as well as Old Town Pasadena and the Lake
Avenue Business and Shopping District. Additionally, it is surrounded by
hundreds of retail amenities, restaurants, hotels, executive
neighborhoods and the local and regional thoroughfares that define the
greater Pasadena area.
Rob Hannan, managing director of Kennedy Wilson’s Commercial Investment
Group, commented, “We are immediately focused on our capital improvement
program to rebrand the property and place it among the submarket’s most
desirable office destinations. In concert with our efforts to improve
the tower, we intend to position the two-story annex building as one of
Pasadena’s premier low-rise creative office settings.”
Kennedy Wilson currently plans to reposition the project through a
capital improvement plan that includes various exterior cosmetic
enhancements, bathroom remodels, elevator lobby renovations and the
addition of highly desired outdoor space for tenants. Concurrent with
the immediate implementation of its capital program, Kennedy Wilson will
market the property’s available space to companies and prospective
tenants in the area.
The company, together with its partners, has acquired approximately
$10.9 billion of real estate and real estate related debt since the
beginning of 2010. The company’s global investment portfolio includes
10.1 million square feet of commercial real estate along with 17,355
multifamily units.
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.
Copyright Business Wire 2014