Kennedy-Wilson Holdings, Inc. , along with one of its partners, bought a four-story Class A office building and seven-story parking structure – 5161 Lankershim Boulevard – in North Hollywood for $45 million. This move demonstrates the company’s efforts to expand its footprint in California.
5161 Lankershim Boulevard office building, spanning 188,366 square feet of rentable space, is positioned at the center of the North Hollywood submarket. The property, which was financed with $7.9 million of equity and $30 million in debt, is considered one of Tri Cities’ premier creative use office buildings of the region.
Kennedy-Wilson plans to refurbish the common areas of the property to enhance its value. Moreover, to increase tenant base at 5161 Lankershim Boulevard, the company aims to undertake marketing initiatives to attract tenants from the technology, media and entertainment sectors.
We view this acquisition as a strategic fit, given the flourishing technology, media and entertainment sectors of North Hollywood submarket. Consequently, Kennedy-Wilson will gain from the rising tenant demand in the region, which will boost its future earnings.
Kennedy-Wilson offers a wide array of real estate services including auction, conventional sales, property services as well as research and investment management. Since the beginning of 2013, Kennedy-Wilson, along with its institutional partners, acquired approximately $2.1 billion worth of real estate and real estate related debt globally.
Kennedy-Wilson currently carries a Zacks Rank #3 (Hold). Among better-performing companies, are FirstService Corporation , E-House (China) Holdings Limited and CBRE Group Inc. (CBG - Free Report) . While FirstService and E-House carry a Zacks Rank #1 (Strong Buy), CBRE Group has a Zacks Rank #2 (Buy).