Kennedy Wilson and Takenaka Corporation Acquire San Francisco Landmark Bank Branch and Office Tower for $135M
BEVERLY HILLS, Calif.--(BUSINESS WIRE)--
Global real estate investment company Kennedy
Wilson (NYSE:KW) today announced that the company has joint-ventured
with the Takenaka Corporation (“Takenaka”) to acquire 400/430 California
Street, a 247,000 sq. ft. office tower and 27,000 sq. ft. bank branch,
in the North Financial District submarket of San Francisco, California,
for $135 million. Kennedy Wilson invested $13.5 million in this
transaction. The property is 100% occupied by MUFG Union Bank, who will
leaseback the property and vacate the tower over the next 2 years on a
staggered basis and the bank branch after 4 years. The property will
subsequently undergo a complete interior renovation. Kennedy Wilson and
Takenaka’s first real estate transaction occurred in 1996 when the
company successfully sold an office building in Los Angeles on behalf of
Takenaka.
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400 California Street (Photo: Business Wire)
“We are very excited to acquire this iconic office tower in San
Francisco’s financial district and to create our first joint-venture
with Kennedy Wilson, the global real estate investment firm with whom
we’ve established a long-term relationship,” said Toichi Takenaka,
Chairman and CEO of Takenaka Corporation. “We have tremendous respect
for the corporate philosophy that we share and trust we can complete
this transaction enhancing both of our firms’ expertise.” Takenaka
Corporation had their first design/construction project in San Francisco
(and in the US) in the late 1960’s and has owned Hotel Nikko San
Francisco since they developed the hotel in 1987.
William McMorrow, CEO of Kennedy Wilson, added, “We are honored to have
our first investment partnership with Takenaka, one of the most
established and respected firms in the world, and hope to find future
ways to invest together.”
Situated in San Francisco’s financial district, 400 and 430 California
Street is a class-A office tower and bank branch fully leased to Union
Bank. The office tower provides excellent views of the San Francisco
skyline, with a 10,000 sq. ft. deck over the roof of the bank branch and
three additional exterior decks. The bank branch was designated a
landmark of San Francisco in 1968. The property has a premiere location
with close access to the California Street cable car line, two BART
stations, and is a short walk to the Ferry Building. Kennedy Wilson’s
asset management strategy includes a full-scale repositioning of the
property, including a renovation of the lobby and other interior
upgrades.
James Andrew International advised the Takenaka Corporation in this
transaction.
About Takenaka Corporation
Takenaka Corporation is among Japan's oldest and largest general
contractors with a long history rich in tradition that spans over 400
years and includes creating many of Japan's most prominent architectural
landmarks. Since 1960, Takenaka has established over twenty offices in
many foreign countries and over the years has been the recipient of many
design, technique, and quality awards. With annual sales in excess of
$12 billion and a track record of acquiring and owning prime properties
in various international locations, the group’s existing portfolio
includes office buildings and hotels in London, New York, Kauai, and San
Francisco. Takenaka Corporation currently has nearly 7,500 employees,
including 2,500 architects, and the group offers comprehensive services
worldwide across the entire spectrum of space creation from site
location and planning to design, engineering and construction, as well
as post-completion services such as facilities management and building
maintenance.
About Kennedy Wilson
Kennedy Wilson (NYSE:KW) is a global real estate investment company. We
own, operate, and invest in real estate both on our own and through our
investment management platform. We focus on multifamily and commercial
properties located in the Western U.S., UK, Ireland, Spain, Italy and
Japan. To complement our investment business, the Company also provides
real estate services primarily to financial services clients. For
further information on Kennedy Wilson, please visit www.kennedywilson.com.
Special Note Regarding Forward-Looking Statements
Statements in this press release that are not historical facts are
“forward-looking statements” within the meaning of U.S. federal
securities laws. These forward-looking statements are estimates that
reflect our management’s current expectations, are based on assumptions
that may prove to be inaccurate and involve known and unknown risks.
Accordingly, our actual results or performance may differ materially and
adversely from the results or performance expressed or implied by these
forward-looking statements, including for reasons that are beyond our
control. For example, we may not be able to maintain our current
acquisition or disposition pace or identify future properties to acquire
on terms we consider attractive, and our current property portfolio may
not perform as expected. Furthermore, the capitalization rate of our
investments represents the net operating income of an investment for the
year preceding its acquisition or disposition divided by the purchase or
sale price. Capitalization rates represent historical performance and
are not a guarantee of future net operating income. Accordingly, you
should not unduly rely on these statements, which speak only as of the
date of this press release. We assume no duty to update the
forward-looking statements, except as may be required by law.
KW-IR

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Investors
Kennedy Wilson
Daven Bhavsar, CFA
Director
of Investor Relations
(310) 887-3431
[email protected]
Source: Kennedy Wilson