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Kennedy Wilson Buys Majority Interest in Southern California Office Buildings

^{Published on 2010-10-06 17:43:05 - Market Wire}
 

BEVERLY HILLS, Calif.--([ BUSINESS WIRE ])--International real estate investment and services firm Kennedy Wilson (NYSE: KW) today announced that the company has acquired a majority interest in One Carlsbad Research Center, two suburban office buildings totaling 98,928 square feet and located in Carlsbad, CA.

"The buildings are in close proximity to affluent residential communities, which will allow us to take advantage of tenant expansions priced out of areas such as Del Mar Heights and La Jolla"

aThis is the first office building acquisition that the company has completed in the current real estate cycle,a stated William McMorrow, chairman and CEO of Kennedy Wilson. aAccording to the Wall Street Journal, there is $1.4 trillion of debt in the commercial real estate sector coming due by the end of 2014, creating investment opportunities in all real estate sectors but more specifically, office properties. We intend to be a major investor in these opportunities.a

As part of the transaction, Kennedy Wilson recapitalized the property and extended the loan on the project for an additional five years. The new capital structure will allow the ownership to aggressively pursue all leasing opportunities in the market.

aThe buildings are in close proximity to affluent residential communities, which will allow us to take advantage of tenant expansions priced out of areas such as Del Mar Heights and La Jolla,a president of Kennedy Wilson Commercial Investment Group, John Prabhu, stated.

The submarket of Carlsbad is part of the San Diego Metropolitan Area, arguably one of the most dynamic areas of the U.S. with a recognized, well-diversified economy, beautiful environment, well-educated population and numerous educational and cultural resources. Key industries in San Diego include communications, defense, high technology, international trade, manufacturing and biotechnology.

About Kennedy Wilson

Founded in 1977, Kennedy Wilson is an international real estate investment and services company headquartered in Beverly Hills, CA with 21 offices in the U.S. and Japan. The company offers a comprehensive array of real estate services including property and asset management, brokerage and auction services, and construction and trust management. Through its fund management and separate account businesses, Kennedy Wilson is a strategic investor and manager of real estate investments in the U.S. and Japan. For further information on Kennedy Wilson, please visit [ www.kennedywilson.com ].