Kennedy-Wilson Holdings, Inc. acquired the 132,995 square foot grocery-anchored retail center – Victory Plaza – and the neighboring multifamily site spanning 2.4 acre in Los Angeles, Calif.
This retail center and the land were bought through debt purchase from an Irish financial institution for $30 million. This included investments of $12 million of equity in the deal with Pacific Western Bank offering $18 million of funding.
With a significant opportunity to add value, the acquisition is a strategic inclusion to Kennedy-Wilson’s U.S. retail platform. For a number of years, the property was under receivership and a number of its leases are substantially below market. Kennedy-Wilson’s U.S. retail platform now consists of 10 properties and 1.3 million square feet in the Western part of the nation.
Recently, Kennedy-Wilson along with its partners purchased a Class A office project in Pasadena, Calif. for $39 million. The move comes as the company makes effort to leverage on the growing economy in Pasadena. With encouraging market fundamentals and promising tech industry growth, Pasadena is emerging as a preferred office submarket in the Los Angeles County.
As a matter of fact, Kennedy Wilson is aiming for a solid platform through opportunistic acquisitions. As a result, the company and its partners acquired multifamily properties in Washington and Northern California in recent times. The company now boasts acquisitions of around $11.2 billion of real estate and real estate related debt since the start of 2010.
Some other stocks worth considering in the real estate operations industry include NorthStar Realty Finance Corp. , Henderson Land Development Co. Ltd. (HLDCY - Free Report) and RE/MAX Holdings, Inc. (RMAX - Free Report) . While NorthStar Realty holds a Zacks Rank #1 (Strong Buy), Henderson Land Development and RE/MAX Holdings carry a Zacks Rank #2 (Buy).