Company announces acquisition of Capitol Towers in Sacramento
BEVERLY HILLS, Calif.--(BUSINESS WIRE)--May. 14, 2012--
International real estate investment and services firm Kennedy
Wilson (NYSE:KW) today announced the acquisition of Capitol
Towers, a 409-unit apartment community in Sacramento, CA. The company
and its partners purchased the property for $64 million, with $50
million in financing from HFF/Freddie Mac at 3.51%, fixed for seven
years. Kennedy Wilson will invest 50% of the equity in the deal. The
acquisition increases the company’s multifamily portfolio to ownership
interests in 13,876 units, including deals currently under contract.
“The Capitol Towers acquisition is an exciting play on the Sacramento
CBD market,” said Robert Hart, president of KW Multifamily Management
Group. “The community is just a few short blocks from the Capitol Mall,
the State Capitol and the light rail station, exemplifying Kennedy
Wilson’s pursuit of higher density infill projects near a major
transportation hub and job center that supports 100,000 office and
government workers.”
According to Meyers Research, market rents for Sacramento MSA increased
2.2% in 2011 and continued to improve by 1.0% in the first quarter of
2012. Additionally, REIS predicts a four-year cumulative rent growth of
32% for the MSA.
Capitol Towers encompasses a four block area with 203 units in one
15-story tower and 206 villa units surrounding the tower. The villa
portion is zoned for up to 1,290 units and the tower features six
ground-floor retail units, providing residents with amenities that
include groceries, dry cleaning and other conveniences. Additionally, a
light rail stop is located adjacent to the property. Kennedy Wilson
plans to renovate the existing units with new kitchen cabinetry as well
as other treatments and further enhance the project’s fitness center,
leasing office and retail amenities.
Kennedy Wilson, together with its institutional partners, has acquired
approximately $5.5 billion of real estate and real estate secured debt
through joint venture and consolidated investments since the beginning
of 2010, including deals under contract. The estimated value of the real
estate assets under the company’s management is $11.8 billion*.
*as of March 31, 2012.
About Kennedy Wilson
Founded in 1977, Kennedy Wilson is an international real estate
investment and services company headquartered in Beverly Hills, CA with
23 offices in the U.S., Europe and Japan. The company offers a
comprehensive array of real estate services including auction,
conventional sales, property services, research and investment
management. Through its fund management and separate account businesses,
Kennedy Wilson is a strategic investor of real estate investments in the
U.S., Europe and Japan. For further information on Kennedy Wilson,
please visit www.kennedywilson.com.
Source: Kennedy Wilson
Kennedy Wilson
Christina Cha
Director of Corporate
Communication
310-887-6294
[email protected]
www.kennedywilson.com