Kearny Real Estate

Heritage Corporate Center

In June 2002, Kearny purchased, at a significant discount, a $55 million sub-performing loan secured by the leasehold interest in Heritage Corporate Center. Kearny bought the loan from an institutional lender and closed the transaction six business days after signing the Purchase and Sale Agreement. Within six weeks Kearny and the borrower signed a consensual agreement whereby Kearny took ownership of the property. Heritage Corporate Center is a mixed-use business park comprised of 23 buildings totalling 720,301 sf in Santa Fe Springs, California. It is located at the intersection of Telegraph Road and Norwalk Boulevard near the junction of the San Gabriel (605) and Santa Ana (5) freeways. As owner, Kearny invested more than $3 million in improvements, simplified the ground lease with the City, lowered operating expenses, and signed more than 320,000 square feet of new leases and renewals, including extending the largest tenant, the County of Los Angeles, for eight years. This successful execution enabled Kearny to sell Heritage Corporate Center in 2005 for a significant profit. Kearny continued to provide property management services for the new owner.