"Kilroy Realty has made another move to reshape its portfolio, shedding another not-so-occupied property as the company faces a wave of lease expirations. The deal for the Sunset Media Center looks like a discount for joint venture Hankey Investment Company owned by billionaire Don Hankey, who put up President Donald Trump's $175 million bond in his New York civil fraud case and Barker Pacific Group."
"Hankey funded the debt for the purchase but amount was not disclosed; per the deed of trust, it is a $42 million note. Kilroy's Los Angeles portfolio encompassed 53 properties, more than 4.5 million square feet of rentable space, and was 74 percent occupied, as of the quarter ended Sept. 30, 2025. In Los Angeles, 42 leases that amount to 507,000 square feet, or about 4 percent of its leased space, are set to expire this year."
Kilroy Realty sold the Sunset Media Center at 6255 West Sunset Boulevard for $61 million to a Hankey Investment Company and Barker Pacific Group joint venture. The 22-story, 326,000-square-foot office traded at about $187 per square foot and carries a Measure ULA tax bill of $3.6 million. The property was 51 percent occupied. The buyer financed the purchase with debt recorded as a $42 million note. Kilroy's Los Angeles portfolio totaled 53 properties and over 4.5 million rentable square feet, about 74 percent occupied, with 507,000 square feet of leases expiring this year. Kilroy previously sold a 65 percent-occupied Santa Monica building and bought Maple Plaza in Beverly Hills, which has driven leasing activity. Future 2026 deal strategy remains uncertain.
Read at therealdeal.com
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