Kennedy Wilson Makes North Hollywood PurchaseOriginally published September 3, 2013 at 3 p.m., updated September 3, 2013 at 4:03 p.m.
Beverly Hills real estate investment firm Kennedy Wilson Holdings Inc. announced Tuesday that it has purchased a four-story Class A office building and accompanying seven-story parking structure in North Hollywood at 5161 Lankershim Blvd. for $45 million.
Kennedy Wilson acquired the property from Jamison Services Inc., a Mid-Wilshire real estate services company that manages and leases more than 22 million square feet in more than 100 commercial buildings in Los Angeles. Jamison originally bought the property in 2008 for $52 million – 16 percent more than Kennedy Wilson paid.
John Prabhu, president for Kennedy Wilson Commercial Investment Group, said the company will market the property to tenants in industries that have expressed high demand for real estate – particularly in North Hollywood – such as technology, media and entertainment.
“Located at the epicenter of the North Hollywood submarket, 5161 Lankershim is one of the Tri Cities’ premier creative office buildings,” he said in a statement.
Kennedy Wilson plans to update common areas in the 188,000-square-foot building, including bathrooms, elevators, lobbies and the parking structure.
Pacific Western Bank provided $30 million in financing for the transaction, while Kennedy Wilson contributed $7.9 million of equity.
The Beverly Hills company, together with institutional partners, has acquired about $2.1 billion in commercial real estate and real estate related debt globally since the beginning of this year, including 2.7 million square-feet in commercial assets in the Western United States, United Kingdom, Ireland, Spain and Japan.
Shares closed down 65 cents, or less than 1 percent, to $18.52 on the New York Stock Exchange.