Kearny Real Estate Co. LLC, an owner and developer of industrial properties, has made a name for itself by taking on large, complex rehabilitation projects.
Among it's two most noteworthy projects: the Century Business Center in Hawthorne, and the Kearny South Bay Business Park in Carson and Los Angeles.
In both cases, the Los Angeles company purchased large single-tenant, owner-user properties and remodeled them to make the developments suitable for multiple tenants.
"We gravitate toward more complicated deals because the risk-reward factor is there for us," said partner Hoonie Kang.
Kearny bought the Vought Aircraft Industries Inc. headquarters in 2005 for $65 million and renamed it the Century Business Center. Later this month the company will complete construction of 21 new industrial buildings at a cost of $45 million. They are targeted at small industrial users and range in size from 5,700 to 20,700 square feet.
Kearny retained about 785,000 square feet of existing buildings on the 45-acre property. Those have all been sold or leased to various users, including a rocket manufacturer, a racecar team and a bath products manufacturer.
"It is a microcosm of the diversity of the L.A. business economy," Kang said.
In all, the company has spent about $40 million on the project.
In October 2006, Kearny bought the former Nissan North America South Bay headquarters for $81 million and renamed it Kearny South Bay Business Park. Since February 2007, when Nissan vacated the site, Kearny has worked to reposition the property, which includes 13 office and industrial buildings ranging in size from 14,000 to 183,000 square feet.
The company is wrapping up a $10 million renovation, which was a challenge because it is located in two municipalities: Carson and Los Angeles. Changes include the demolition of a bridge that connected several of the buildings.
"Each user wanted a secured site and didn't want to share access," said Kang.
The company has sold several of the buildings on the site, including a nine-story office building to tire and wheel distributor Tireco Inc. of Compton.
"We would love to buy 10 more of these," said Kearny managing partner Jeffrey A. Dritley.
BEST REHAB DEVELOPER
Kearny Real Estate Co. LLC, Los Angeles
Principals: Managing partner Jeffrey A. Dritley; partners Hoonie Kang and Tony Nobuyuki
Notable Projects: Century Business Center, Hawthorne; Kearny South Bay Business Park, Carson and Los Angeles
Key Fact: Since 1993 founding, has developed and managed about 170 assets valued more than $3.6 billion
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