A joint venture led by Beverly Hills real estate firm Kennedy-Wilson Holdings Inc. has acquired three L.A. office buildings for $78.5 million from Koreatown’s Jamison Services Inc., once the largest private commercial office landlord in the city.
In separate transactions, Kennedy-Wilson acquired the Marina View office and retail center at 4834 Lincoln Blvd. and 13274 Fiji Way in Marina del Rey; the Royal Beverly Glen office building at 10390 Santa Monica Blvd. in Century City, and the Tri Center office building at 5990 Sepulveda Blvd. in Van Nuys. The properties had been on the market for about nine months, according to CoStar Group Inc.
Kennedy-Wilson invested $6.5 million of equity in the transactions, bringing its total purchases of real estate-related assets by the company and its partners to $8 billion since 2010, including $2.9 billion in 2012.
Jamison has been selling off its properties over the last year as it seeks to reduce the size of its portfolio, which peaked at 131 properties at the height of the market last decade.
Kennedy-Wilson has been purchasing many of Jamison’s properties over the past two years. A joint venture led by Kennedy-Wilson acquired five office buildings from Jamison in 2011 for nearly $144 million. On its own, Kennedy-Wilson purchased Jamison’s North Hollywood Academy Tower office building for $48 million last year.
Kennedy-Wilson is known for buying underperforming buildings, improving and then selling them.
“We are excited by the acquisition of these three office buildings,” John Prabhu, president of Kennedy-Wilson’s commercial investment group, said in a statement. “Marina del Rey, Century City and Van Nuys are all among Los Angeles’ most desirable submarkets and these premier locations provide excellent inherent tenant demand stemming from the technology, media and entertainment industries.”
An 81-unit Koreatown apartment complex sold for $15.3 million in December in one of the highest prices on a per-unit basis in the area in the past year.
Xenon Management bought the Oxford Garden Apartments complex, at 951 S. Oxford Ave., from Oxford Gardens LLC, which has owned the property since developing it in 1986.
The previous owner was looking to sell the property and use the cash to buy an occupied single-tenant retail building as part of a 1031 exchange, which allows a buyer to avoid paying capital gains taxes if it acquires a similar property within six months.
The price was driven up to $188,889 a unit after more than a dozen offers.
Xenon liked the property for its large size and location amid a gentrifying and redeveloping neighborhood near the heart of Koreatown, said Brent Sprenkle of Hendricks & Partners who represented both sides in the deal.
“The location was fantastic,” he said.
Building amenities include a pool, courtyard and barbecue area. Rental rates for the one- and two-bedroom units range from $985 to $1,420 a month, according to CoStar. Xenon plans to complete some cosmetic upgrades to the property and raise the rents.
Karoline Sauls of Hendricks & Partners also represented both sides in the deal.
Baldwin Park shopping center Park Plaza on Maine is getting a facelift.
NewMark Merrill Cos. and an unnamed New York-based real estate partner have begun a $2.5 million redevelopment of the Baldwin Park shopping center at 14503 Ramona Blvd. The project is scheduled to be completed next month.
The center has been through a couple of upgrades since it was developed in 1989 as part of an agreement with Baldwin Park’s Redevelopment Agency. The renovation will include updating the center with modern facades, new street-front monument signage, outdoor seating and a new fountain.
Park Plaza on Maine is anchored by Superior Grocers and a CVS/Pharmacy. Other tenants include Chase Bank, Little Caesars and O’Reilly Auto Parts. Stores will remain open during the remodel.
NewMark and its partner purchased the 165,000-square-foot property late last year for an undisclosed price with plans to renovate the center.
“We are delighted to demonstrate our commitment to the community by bringing an improved shopping experience to the city of Baldwin Park,” Sandy Sigal, chief executive of NewMark, said in a statement.
Staff reporter Jacquelyn Ryan can be reached at firstname.lastname@example.org or (323) 549-5225, ext. 228.
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