LOS ANGELES -- Kearny Street Real Estate Co. has purchased more than $70 million of real estate loans and real estate owned from Bank of California.

The acquisition, the first for the firm's own portfolio, consists of both performing and nonperforming real estate loans secured by hospitality, retail, and multifamily projects in California.

The owned real estate is a well-performing neighborhood retail center in Alameda County near San Francisco.

Kearny Street, which is managing $1.4 billion of assets that the Morgan Stanley Real Estate Fund acquired from Bank of America, is making investments long term, rather than to "churn and burn" assets, and is also looking outside of California and the West, said Glenn A. Sonnenberg, executive vice president of the Los Angeles-based real estate firm.

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