Kennedy-Wilson Holdings, Inc. (NYSE:KW) along with its partners purchased a Class A office project in Pasadena, Calif. for $39 million. The move comes as the company makes effort to leverage on the growing economy in Pasadena. With encouraging market fundamentals and promising tech industry growth, Pasadena is becoming a much preferred office submarket in the Los Angeles County.
For this property that spans 175,792 square foot, total equity invested in the deal was $16 million. Of this, 5% was contributed by Kennedy Wilson. Moreover, a $23 million loan on the property was secured by the company.
Built on a 3.5 acre site that also has a zone for multifamily development, this asset is situated at 245 S. Los Robles in Pasadena, Calif. It consists of an eight-story Class A office tower (130,000 square feet), a two-story annex building (roughly 46,000 square feet), a four-level parking structure as well as around one acre surface parking lot. Kennedy Wilson will execute a capital improvement program for this property to rebrand it.
Kennedy Wilson is focused on building a solid platform through opportunistic acquisitions. As a result, the company and its partners acquired multifamily properties in Washington and Northern California in recent times. The company now boasts investments spanning over 10 million sq. ft. of commercial real estate.
Kennedy-Wilson currently has a Zacks Rank #2 (Buy). Other players in the real estate operations industry, which look attractive at current levels, include Henderson Land Development Co. Ltd. (OTC:HLDCY), NorthStar Realty Finance Corp. (NYSE:NRF) and RE/MAX Holdings, Inc. (NYSE:RMAX). All these stocks carry the same Zacks Rank as Kennedy-Wilson.