Legal Dispute Over O.C. Fairgrounds Stalls Sale; Kennedy Wilson Buys Office Properties
- Jun 20, 2011
If Southern California seemed like it was lacking a good legal drama, the real estate sector stepped up to the plate recently with the state appeals court’s ruling on the sale process for the Orange County Fairgrounds. The sale–which would have totaled $100 million, including a $20 million down payment and a 35-year note–was ruled as flawed, with a full redo ordered if it were to be completed. The buyer, Facilities Management West, is currently considering challenging the ruling, according to a Los Angeles Business story.
The sale is based on former Gov. Arnold Schwarzenegger’s proposed plan to alleviate the pressure on the budget deficit. The fairgrounds were targeted to bring a consistent sum to aid the state’s financial issues. However, the property’s sale has been officially contested by assemblyman Jose Solorio, a representative from Anaheim who is also pushing legislation to maintain the grounds under public ownership.
While that deal is in flux, real estate investment firm Kennedy Wilson made headlines with the acquisition of approximately 700,000 square feet of space, according to Los Angeles Business. The five office buildings total $143.5 million, bringing assets under management to a total of $9.8 billion. The first of the five transactions entailed was finalized on June 15, with the remaining deals set for completion during the following 60 days. Locations for the buildings include Beverly Hills, the Miracle Mile and Encino.