Kennedy Wilson Expands in Silicon Valley With $147M Buy

The property sold for almost 30 percent more than it did in 2018, a sign of the robust local demand for medical office and R&D space.

Vasona Technology Park.

Kennedy Wilson has expanded its Bay Area R&D holdings. The Beverly Hills-based investment company acquired Vasona Technology Park in Campbell, Calif., for $147.3 million, according to Santa Clara County records. The seller of the fully leased office park was a joint venture of Vista Investment Group and PIMCO, the records show.

The transaction was also subject to a loan provided by Bank of America. The property’s value increased by roughly 29 percent since it was acquired by the joint venture in 2018, from The Carlyle Group, according to CommercialEdge. Vasona Technology Park previously traded for $113.3 million.


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Vasona Technology Park is a Class B property that comprises six buildings totaling 267,476 square feet. The 1982-built asset provides medical office and R&D space, occupying roughly 16.2 acres at 200 E. Hacienda Ave. Tenants benefit from a parking ratio of 3.7 spaces per 1,000 square feet.

According to CommercialEdge, Kaiser Permanente is the anchor tenant, with the health-care provider occupying three buildings totaling 93,294 square feet at the office park. Kaiser Permanente offers psychiatry, pharmacy, and other medical services at the location.

Other tenants include the electric vehicle charging company, ChargePoint—which has its corporate headquarters at Vasona Technology Park—as well as Creganna Medical, a provider of technologies and services to medical companies, and Imperative Care Inc., a biotechnology firm specializing in stroke care technologies.

The surrounding area features a variety of similar businesses and companies, such as the nearby El Camino Hospital Los Gatos. Downtown San Jose is roughly 9 miles to the north of Vasona Technology Park. Major nearby thoroughfares include the San Tomas Expressway and State Routes 85 and 17, all within a 2-mile radius.

An appetite for life sciences, R&D

Kennedy Wilson paid roughly $550 per square foot for the asset, slightly above the average $505 price per square foot recorded in year-to-date sales in the Bay Area as of June, CommercialEdge data shows. The investor completed the purchase through its Kennedy Wilson Real Estate Fund VI, which closed in 2019 and raised $775 million. According to its website, the fund targets value-add opportunities in the Western U.S. In April, the fund also acquired a Fremont, Calif.-area R&D asset for $32.3 million from TA Realty.

According to CommercialEdge data, Kennedy Wilson owns roughly 742,370 square feet of office space in the Bay Area. Its 11 properties are all located in the South San Jose submarket, except for the Fremont asset.

The Bay Area continues to show its strength as a life sciences and R&D hub. By the first quarter’s end, the market remained on top, with a total inventory of nearly 30 million square feet and with a vacancy rate of 2.4 percent, one of the lowest among U.S. life sciences/R&D hubs, according to CBRE research.

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