Two buildings totaling 197,370 sf in the South Coast Metro market purchased in a joint venture with Sequoia Heritage
Kearny will invest $15mm during 2018/19 to transform the underutilized podium into a people-friendly, inviting campus that adds shared indoor/outdoor amenities including conference rooms, meeting areas and fitness areas
232,936 sf office building located on the B Street Corridor of downtown San Diego
Previously the Union Bank building, re-branded as FIVE THIRTY B
$15 million capital improvement program included outdoor “Sky Terrace” as coveted amenity
Increased occupancy from 50% to 78% in two years then managed the building to 92% occupancy eight months after sale
“The Kearny team was very cooperative and professional. It was a pleasure to work with such a professional and sophisticated team on the other side of the transaction.” Larry Lawrence, Sr. Vice President, Union Bank
Century Business Center / Hawthrone, CA
$150mm adaptive re-use project
2.4mm sf of metal manufacturing/aviation buildings
1.1mm sf adaptive re-use
204,000 sf new construction
776,000 sf existing building
Numerous stakeholders to deal with
Northrop – environmental remediation
City & Community
Tentative and Final Map
Combination of re-use and new development
LA Air Force Base / El Segundo, CA
In 2003, Kearny was selected for the Los Angeles Air Force Base (LAAFB) build-to-suit and private sector development of the excess land in El Segundo and Hawthorne, CA
$500mm total project costs
542,000 sf state of the art, low-rise office campus completed 3 months ahead of schedule in 2006
Entitlements included an EIR/EIS, annexation of land from El Segundo to Hawthorne, approval of Tentative Maps, Specific Plans and Development Agreements, along with creating a new redevelopment district in Hawthorne and agreements with the County of LA and Hawthorne Redevelopment Agency to pledge the incremental property taxes and fulfill a low-to-moderate housing obligation for 180 units
LAAFB project won 2008 Air Force Design Excellence Honor Award and the 2004 American Planning Association’s Planning Project Award (Los Angeles Division)
Pasadena Corporate Park / 251 S. Lake Ave, Pasadena, CA
Former 265,000 sf Xerox research facility
Stripped structure to steel frame
New curtain wall
New HVAC, electrical, plumbing and mechanical
Addition of prominent lobbies and exterior canopies
Otay Crossings Commerce Park / San Diego, CA
Land entitlement and development joint venture with PCCP since 2007
311 acres on the Mexican border with new toll road and Port of Entry (border crossing)
Completed EIR and Tentative Map for 59 industrial lots
Acquired additional 229 acres for off-site mitigation
Stakeholders involved in approvals:
County of San Diego – lead agency
City of San Diego
Army Corps of Engineers
California Fish & Wildlife
The $40 million first phase of on-site/off-site infrastructure will commence early 2018, which will deliver 100 acres of finished lots
Purchased in 1996 as part of the Chevron Land portfolio
Master planned the 23 acres, processed entitlements, remediated soil issues and abandoned and capped oil wells from 1997-2000
Completed office build-to-suit for Infonet, designed and sold the land for a 4-story office project, sold two hotel pads (Hilton Garden Inn and a Marriott Residence Inn), and sold the land for the 134,000 sf Lakers/Kings Training Center
Infonet Build-to-Suit / El Segundo, CA
Kearny and Infonet worked as partners to design, develop and value engineer the development of a global headquarters office building totaling 156,704 sf on 6.5 acres.
The three story, braced frame building combines a flexirock ribbonwall and a glass curtain wall exterior. Unique construction characteristics include methane gas protection, raised floor air, power and data plenum throughout the building.
“One of our best business decisions was to choose Kearny Real Estate Company to develop our facility. They were creative and flexible in offering us options as to how to work together as a team in a transaction structured as a preleased build-to-suit with an option to purchase. Kearny completed our Headquarters on time and on budget. We found the Kearny team to be diligent, responsive, professional, and easy to work with.” — Richard T. O’Reilly, Senior Director, Corporate Administrative Service, Infonet
Nokia Build-to-Suit / Poway, CA
Completed two separate build-to-suit buildings for Nokia Mobile Phones totaling 325,000 sf
The Nokia Product Creation Center is a three story, Class A, 190,000 square foot research and development facility completed in November 1999.
The Nokia Regional Office is a three story 135,000 sf Class A office building completed in September 2000.
Newport Corporate Plaza / Newport Beach, CA
In June 2014, Kearny purchased 17 of the 24 properties (5 buildings as fee simple and 12 land parcels each subject to an individual ground lease) in the Newport Corporate Plaza office park in partnership with AEW.
Buildings range from 7,300 to 14,450 sf
The buildings are single‐story, freestanding brick and glass in an attractive, low density campus setting with 4.1/1000 surface parking.
Kearny was attracted to the acquisition due to the complexity of the structure, previous buyer’s failed attempts, and the optionality to pursue a long term, low risk core strategy, a value add individual building sale strategy, or an opportunistic residential entitlement strategy.
Warner Center Business Center / Los Angeles, CA
15 building 468,889 sf business park located in Woodland Hills, California
$1 million building upgrade and marketing program to sell or lease individual buildings
Within fourteen months, Kearny executed new and renewal leases totaling 200,000 sf and sold all fifteen buildings in 10 separate transactions generating financial returns far exceeding expectations.
Warnerview Corporate Center / 5959 Topanga Canyon, Los Angeles, CA
Three story 60,000 sf Class A office building
Completed a significant rehabilitation program that included main and floor lobbies, corridors, restrooms, and elevator cab renovations.
Kearny made changes that resulted in a 20% reduction in operating expenses while enhancing tenant services with better property management policies and personnel, resulting in 80% of tenants renewing their leases within two years.
1700 Walnut / El Segundo, CA
Six story 118,000 sf office building vacant at acquisition
$4 million rehabilitation and re-tenanting program to enhance lobbies, corridors, restrooms and elevator cabs.
Achieved 100% occupancy within a two-year period.
Kearny sold the property in May 2005 and continued to provide property management for the Buyer.
Mission Center Office Park / San Diego, CA
Three 3 Class B office buildings totaling 181,000 sf
Completed a multi-million dollar renovation to the exteriors, lobbies, landscaping and amenities
Added amenities include gym, showers, and concierge bike-share system
Renewed anchor tenant, the County of San Diego, on a long term NNN lease
Renewed Azusa Pacific University long-term and expanded their occupied space
77% occupancy at close, 95% occupied 18 months later
Kearny South Bay Business Park / Gardena, CA
42-acre, 708,000 sf former Nissan campus
Converted campus to 13 stand-alone buildings from single-user campus
Resolved challenges with both City of Los Angeles and Carson, including;
Lot line adjustments
Quit claim of parking covenants
Demo of two pedestrian bridges
Completed adaptive re-use
Significant ADA and cosmetic improvements
The sales of the individual buildings to small and medium-sized businesses helped minimize the impact from the 2,000 jobs that were lost when Nissan moved to Tennessee.
24100 Orange Avenue / Perris, CA
Secured a 20-year ground lease and successfully processed a Mitigated Negative Declaration
$5mm adaptive re-use of 90,000 sf metal building for a build-to-suit and 15-year lease with El Dorado Stone
Otay Mesa Industrial
Entitled 90 acres in 2005 and completed on and off-site street improvements
Phase I, Britannia Industrial Park, consisted of 39 acres with a tentative map to subdivide the property into 12 parcels.
Recorded the final map in December 2006 and completed grading and infrastructure improvements in 2007
18.8 acres of finished lots were sold to four users and Kearny completed 156,000 sf of spec buildings in July 2008
Five dock high buildings from 23,000 to 36,000 sf were sold to users in four separate transactions
Phase II, Siempre Viva Industrial Park is 50 acres, including a 10-acre parcel within a MHPA (Multiple Habitat Protection Area.)
Completed a mitigated negative dec and a tentative and final map and sold the property in 2010
Nuevo Business Park / Perris, CA
76 acres acquired in four phases beginning in November 2004
Completed EIR and Tentative Map in July 2007 to subdivide the property into finished parcels ranging from one to eight acres with eventual buildout of approximately one million square feet.
Completed $3 million in off-site sewer, water and storm water improvements and sold the land in three separate transactions to two developers and one user in 2007
Seacliff Business Center / Huntington, Beach, CA
16.5 acres consisting of several non-contiguous parcels throughout Huntington Beach, as part of the Chevron Land portfolio acquisition in 1996
Remediated extensive soil contamination, abandoned and capped several oil wells, and processed entitlements to make the properties available for sale or development
Sold approximately 12 acres to developers and users
Developed 4 acres into Seacliff Business Center, a seven building, 58,186 sf industrial park with building sizes ranging from 5,452 to 10,980 sf
Construction commenced in January 2003 and was completed in September
All seven buildings sold immediately after completion evidencing the strong demand for the project.
Westside Business Center / Temecula, CA
Kearny acquired 56 acres of Westside Business Centre in Temecula in June 2000.
The 56 acres were the last remaining in Westside Business Centre, a 385 acre park located strategically in south Riverside County with direct I-15 access via Winchester Drive.
Within four weeks of purchasing the land, Kearny signed a letter-of-intent with The Scotts Company for their 412,580 sf build-to-suit requirement.
Kearny sold The Scotts building in March 2002 for $26.8 million ($64.96 psf), which set a record per square foot price for an industrial facility in Riverside County.
Land sales included 4.75 acres in November 2002, 8.5 acres in January 2004, 6.7 acres in May 2004 and 5.4 acres in March 2005. The final sale at $10.25 psf set the high water mark for an industrial lot sale in the Temecula Valley.
Remington Business Center / Temecula, CA
Remington consists of 127,063 sf in 24 industrial condominium units ranging from 3,915 to 6,860 sf.
All units are state-of- the-art and have fenced yards, approx 500 sf office buildout, and 16′ minimum warehouse clearance.
Developed over two phases. Phase I, 11 units totaling 72,745 sf, completed in July 2004.
Phase II, 13 units totaling 54,318 sf, was completed in March 2005.
Sell out was achieved in August 2005, five months after completing construction.
Scotts Build-to-Suit / Temecula, CA
Located on 22.5 acres, the building is 412,580 sf and is the worldwide manufacturing and distribution facility for Scotts’ lawn spreader division.
The facility includes 185,000 sf of distribution space, 200,000 sf of manufacturing space, and 25,000 sf of office.
The tilt-up concrete construction, has 31 dock-high doors and a clear height of 29 feet.
The project was developed on a fast track schedule with Scotts occupying 10 months after signing the lease.
The leased investment was sold in March 2002 for a record per square foot price for an industrial facility in Riverside County.
Moreno Valley / Moreno Valley, CA
52-acre acquisition with Sequoia Capital
Completed EIR and all entitlement approvals ahead of schedule and on-budget
Land approved for state of the art LEED certifed 1.1MM sf cross-dock distribution building
Completed a land sale in December, 2016 after processing construction permits
Kearny Industrial Fund
Partnership between Kearny Real Estate Company and Morgan Stanley Real Estate’s $15 billion Prime Property Fund
Formed in 2005 to acquire industrial properties throughout southern California
The Fund has acquired properties spanning from the Redlands industrial market in the Inland Empire East to Sorrento Mesa in San Diego County in both path of growth and infill locations.
Ocean View Hills Corporate Center / Otay Mesa, CA
Located in the Otay Mesa submarket of San Diego, Kearny asset and property manages Ocean View Hills Corporate Center for the Prime Property Fund starting March 2009.
The property is a state of the art industrial park comprised of six buildings totaling 665,572 sf.
42301 Zevo Drive – Temecula Industrial / Temecula, CA
Located in the Westside Business Centre in Temecula, Kearny acquired 42301 Zevo Drive in June 1999.
A 223,140 sf industrial/distribution and light assembly facility
The building contains thirty six dock-high and six grade-level doors and has a clear height of 26 feet and is divisible into six 36,000 sf units containing 10% mezzanine space.
Kearny purchased the building 60% occupied and immediately began an aggressive marketing campaign which drove occupancy to 100% within three months.
Hawthorne Airport / Hawthorne, CA
45-year ground lease with the City of Hawthorne for the non-runway portions of the Airport
Completed the entitlement process, including an EIR and an airport layout and masterplan, for the development of up to 190,000 sf of much needed additional hangars.
The first phase of development, encompassing nine hangars, was completed 4Q2008.
Many improvements and renovations were completed at the airport including a $6 million runway strengthening project and a $1.5mm renovation of the terminal FBO building.
15330 Avenue of Science
A partnership of Kearny and TriGate Capital, acquired a this vacant 74,000 sf R&D Building in Carmel Mountain Ranch area in San Diego County in August 2010.
A short sale purchase at 68% of the loan balance and allowed the borrower to alleviate a personal guarantee
Kearny completed a $1.8 million renovation of façade enhancements, parking lot improvements, landscaping upgrades, and tenant improvements to reposition it to Class A
Building was sold to a user
Bakersfield Airport Business Center
Bakersfield Airport Business Center is a 450 acre master-planned industrial park.
Home to United States Postal Service (650,000 sf), Pac Tiv, a polystyrene manufacturer (600,000 sf), and the Bakersfield Californian, local newspaper (400,000 sf).
Purchased from Chevron Land in 1996 as part of the $300 million portfolio acquisition
Completed a new loop road to further sub divide the property and sold all parcels to various buyers in sizes ranging from 1 to 26 acres
Sun Life Portfolio
In June 2012, Kearny in partnership with MSREF acquired an $89 million portfolio of performing and sub/non-performing loans from Sun Life Assurance Company of Canada.
17 loans located in CA, TX, WA, PA, NM, IL, OR, OH, TN & FL
The owner engaged Kearny to manage the entitlements for a future retail center on 27.3 acres adjacent to the intersection of Newport Road and the I-215 in Menifee, CA.
The project will encompass all entitlements required by the City including a full plot plan approval and potentially an Environmental Impact Report.
Kearny assists the Tribe in its efforts to market the property to potential anchor tenants as well as consult on future leasing negotiations.
The project will ultimately include 250,000+ sf of anchored retail space for a variety of tenant mixes, including multiple retail pads which could accommodate drive-thru tenants, free standing commercial buildings and numerous in-line multi-tenant spaces.
Far East Bank Portfolio
In August 2011, Kearny in partnership with MSREF acquired a $52 million portfolio of performing and sub/non-performing loans from Far East Bank.
27 loans located in California
Collateral included condominiums, apartments, office, industrial, retail and land.
China Trust Bank Portfolio
In March 2011, Kearny in partnership with Morgan Stanley Real Estate Investing acquired a $196 million portfolio of performing and sub/non- performing and REO loans from China Trust Bank.
41 loans and four REO properties located in CA, NV, WA, NJ and NY including condominiums, apartments, office, industrial, retail and land
Kearny worked through all of the non-performing loans and fully resolved the portfolio.
Central Pacific Bank Portfolio
In September 2010, Kearny in partnership with MSREF acquired a $155 million portfolio of performing and sub/non-performing loans from Central Pacific Bank.
12 loans located in CA, AZ and WA
Resolutions included DPOs, foreclosures, and note sales
Chevron Land Portfolio
In 1996, Kearny Real Estate Company, along with Morgan Stanley Real Estate Fund II, LP (“MSREF”) purchased most of the assets of Chevron Land & Development Company.
Over 70% of the land portfolio was well located infill locations within major metropolitan areas such as San Diego and Orange County.
Kearny financed the acquisition with 75% debt on the income producing portfolio and no debt on the land portfolio.
Kearny/MSREF significantly exceeded their underwriting returns for the portfolio by proactive leasing and sale of the income producing assets and development and sale of the land assets.
For the land assets, Kearny developed over 60% of the portfolio as either residential or commercial. The residential development was completed through a partnership with Shea Homes, and Kearny implemented the office and industrial development program in-house.
Chevron had previous oil operations on many of the sites. Kearny negotiated the purchase and sale contract so that Chevron indemnified Kearny and agreed to clean-up properties which were currently known to contain hazardous materials.
Union Bank, IBJ and Bank of Cal Portfolios
In 1994 Kearny acquired three portfolios, one from Union Bank totaling $240 million, one from IBJ for $72 million and one from Bank of Cal with a book value of $69 million. Kearny performed extensive due diligence, won the competitive bid, negotiated and closed the transactions and spent three years managing and disposing of the assets either as loans or REO, resulting in a substantial profit to the owners.
Kearny Street Portfolio
In June 1993, Kearny Street Real Estate Company acquired a $1.36 billion portfolio of non-performing loans and real estate from Bank of America.
The portfolio consisted of 122 assets located predominately throughout the Western United States. At close the portfolio make up included:
Loans Paying as Agreed – 44.0%
Loans Not Paying as Agreed – 51.1%
REO – 4.5%
Kearny designed and implemented individual strategies for each asset and liquidated the assets over a six-year period.
The Kearny Street investment returned nine times the equity invested to its owners.