June 5, 2017
Beverly Hills, CA-based Kennedy Wilson acquired 90 East, a 573,000-square-foot office campus consisting of three Class A office buildings in greater Bellevue, WA for $153 million in an off-market transaction. Built between 1999 and 2001 on a 20-acre site, the institutional-quality office campus is 100% leased to Microsoft and Costco, with a weighted-average lease term of 5.3 years.
Kennedy Wilson’s Matt Windisch said, “With two investment grade companies fully occupying the building, 90 East offers a strong initial cash flow yield and the potential to earn attractive long-term risk adjusted returns for the company.”
The sellers were Seattle-based Talon Private Capital and New York-based Cerberus Capital Management.
Kennedy Wilson invested $76 million of equity, and also secured a 10-year interest-only loan for $77 million at a fixed-rate of 3.85%. The acquisition brings Kennedy Wilson’s portfolio in the state of Washington to 1.4 million square feet of office.
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