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Kennedy Wilson puts Glendale office properties up for sale
Assets are 92% leased, but major tenant Dine Brands plans to leave in April
Kennedy Wilson is ready to say goodbye to Glendale.
The Beverly Hills investment firm has listed two buildings at 400 and 450 North Brand Boulevard for sale, according to marketing materials obtained by TRD and a LoopNet listing for the buildings. A team led by Newmark’s Kevin Shannon and Rob Hannan are marketing the property for sale.
The two buildings total about 441,000 square feet of commercial space, of which about 77,000 square feet is retail.
As of November, the buildings are 92 percent leased. However, its largest tenant, Applebee’s and IHOP owner Dine Brands, plans to leave the building once its 106,000-square-foot lease is up in April.
Other tenants include Cigna, which occupies about 62,000 square feet; the California Nurses Association; coworking firm Regus; and Learner’s Digest. Besides Dine Brands, none of the other leases on the buildings expire before 2024.
In 2017, Kennedy Wilson bought the property for $144 million, at about $330 per square foot, from MetLife through a pooled investment fund. The purchase was made with $50 million in equity and a $95 million loan from JPMorgan, according to public records and a public statement at the time.
Though the loan was set to expire this year, Kennedy Wilson extended the debt’s maturity in May, according to a memorandum of a lease amendment filed with L.A. County. New terms of the loan were not disclosed.
Kennedy Wilson has been working over the last quarter to sell off non-core office properties in the U.K. and other retail properties in the Western U.S.
The publicly traded firm sold five properties for $159 million in the third quarter, as well as $525 million worth of assets co-owned with other investors, according to a financial filing earlier this month.