Kennedy Wilson on Wednesday said it has acquired an aging 132,995-square-foot retail center in North Hollywood that includes undeveloped property.
The Beverly Hills real estate investment and services firm, which has been an active investor in the debt and assets of struggling Irish banks, said Victory Plaza is its 10th U.S. retail acquisition and second recent purchase of a U.S. property from a European financial institution. The undeveloped 2.4 acre site is zoned for multifamily housing.
“This transaction is an example of our cross-border sourcing capabilities,” Matt Windisch, Kennedy Wilson executive vice president, said in a statement. “There is a significant value-add opportunity for the retail center which has been in receivership for several years and has several major leases significantly below market.”
The company acquired the property from an Irish financial institution. A Vallarta chain supermarket is the anchor tenant at the Victory Boulevard center, which was built in 1977. The company purchased the debt on the properties in December for $30 million, investing $12 million of its own equity in the deal with Pacific Western Bank providing $18 million in financing. After the debt purchase, Kennedy Wilson obtained title to the properties through a foreclosure. The Irish bank was not identified, but CoStar names Van Nuys commercial developer Dasher/Lawless Inc. as the seller of record.
Shares closed down 4 cents, or less than 1 percent, to $23.37 on the New York Stock Exchange.