Real Estate

12 Months Ended

Dec. 31, 2011

Real Estate [Abstract]

Real Estate Owned [Text Block]

REAL ESTATE

Kennedy-Wilson’s investment in real estate includes the following:

	December 31,
	2011			2010
Office building in Japan	$	9,818,000		$	9,279,000
House in Kona, Hawaii	8,724,000			8,724,000
204-unit residential apartment complex in Lompoc,      California	25,883,000			25,780,000
2,700 acres of ranch land in Oahu, Hawaii	39,166,000			36,726,000
Residential land in Kona, Hawaii	4,101,000			4,101,000
Office building in Oakland, California	21,285,000			—
Foreclosed properties (see Note 4)	9,256,000			—
Other	3,082,000			2,097,000
	121,315,000			86,707,000
Less: Accumulated depreciation	(5,435,000		)	(4,006,000		)
Total	$	115,880,000		$	82,701,000

See footnote 3 and 4 for further discussion on acquisitions made during 2011.

During 2010, Kennedy-Wilson acquired a controlling interest and assumed the debt of a 2,700 acre ranch in Hawaii. The purchase price of the controlling interest combined with previously capitalized investments made by Kennedy-Wilson and the $16.0 million payoff of debt at a discount resulted in the new basis consolidated in the amount of $36.7 million as of December 31, 2010. The ranch is currently being developed for its intended use. As such, $1.9 million and $0.8 million of avoidable interest have been capitalized during 2011 and 2010, respectively, to the project.

During 2010, Kennedy-Wilson purchased a note from a bank for $5.3 million secured by a house in Kona, Hawaii. The borrower subsequently transferred the deed to Kennedy-Wilson in lieu of a foreclosure. In addition, the borrower paid Kennedy-Wilson $0.2 million and issued an unsecured promissory note in the amount of $1.0 million.