Global real estate investment company Kennedy Wilson has acquired Hamilton Landing, a San Francisco Bay Area office campus with seven buildings across 20 acres in Marin County, for $115 million.
The Company invested $55 million of equity and assumed a $60 million interest-only loan at a fixed rate of 4.34% maturing in 2025.
Hamilton Landing, a San Francisco Bay Area office campus, was built in the 1930’s as an Air Force base, decommissioned in the 1970’s and then converted into Class A creative office space in phases between 2000 and 2008.
Hamilton Landing is located approximately 25 miles north of Downtown San Francisco with proximity to some of the Bay Area’s most desirable neighborhoods and access to many transit options, including a SMART train station located half of a mile from the property.
Hamilton Landing is 92% occupied with a weighted average lease term of 4.5 years. Rents are currently priced at a greater than 50% discount to rents in Downtown San Francisco.
According to the statement, Kennedy Wilson acquired Hamilton Landing through a 1031 exchange with proceeds generated from the recent sale of two multifamily properties: ShorePark, a 393-unit apartment community in Sacramento, California, and Indigo Springs, an apartment community with 302 units in Kent, Washington.
The Company had a 50% interest in these two assets, which were sold for $176 million and generated cash to Kennedy Wilson of $63 million. Kennedy Wilson increased net operating income by 95% at the properties over the 12-year average hold period. Kennedy Wilson’s share of estimated annual NOI at the two sold multifamily properties was approximately $5M and is approximately $8M at Hamilton Landing.
“The acquisition of Hamilton Landing feeds into our ongoing focus on improving the quality of the portfolio, and trading into assets with strong cash flow and high growth potential,” said William McMorrow, Chairman and CEO of Kennedy Wilson.