International real estate investment and services firm Kennedy Wilson and its partners have acquired 245 S Los Robles, a 175,792 square foot Class A office project in Pasadena, California, for USD39m.
The total equity invested in the transaction was USD16m, five per cent of which was contributed by Kennedy Wilson.
Additionally, the company secured a USD23m loan on the property from JPMorgan Chase.
“We are delighted to acquire a rare value add opportunity in Pasadena, one of Los Angeles County’s most sought after office submarkets,” says John Prabhu, president of Kennedy Wilson’s commercial investment group. “We are optimistic on the growth of Pasadena and its diverse economic drivers, including its burgeoning tech industry.”
245 S Los Robles consists of an eight-story Class A office tower totalling approximately 130,000 square feet, a two-story annex building totalling almost 46,000 square feet, a four-level parking structure and an approximately one acre surface parking lot. Collectively, the project is situated on a 3.5 acre site, part of which is zoned for multifamily development, and encompasses nearly an entire city block in the heart of Pasadena. The project is located near the mixed-use Paseo Colorado outdoor lifestyle centre as well as Old Town Pasadena and the Lake Avenue Business and Shopping District. Additionally, it is surrounded by hundreds of retail amenities, restaurants, hotels, executive neighbourhoods and the local and regional thoroughfares that define the greater Pasadena area.
Kennedy Wilson currently plans to reposition the project through a capital improvement plan that includes various exterior cosmetic enhancements, bathroom remodels, elevator lobby renovations and the addition of highly desired outdoor space for tenants. Concurrent with the immediate implementation of its capital programme, Kennedy Wilson will market the property’s available space to companies and prospective tenants in the area.