Two apartment assets traded at combined cap rate of 4.5%
BEVERLY HILLS, Calif., Apr 17, 2012 (BUSINESS WIRE) --International real estate investment and services firm Kennedy
Wilson (NYSE: KW) today announced that the company sold two
of its multifamily properties for a total of $154 million. Net proceeds
of $64 million will be distributed to the company and equity holders,
including $18.5 million to Kennedy Wilson. 360 Residences, a 213-unit
luxury residential tower in San Jose, CA and Arbor Creek Apartment
Homes, a 440-unit community in Beaverton, OR were traded to separate
buyers at an average cap rate of 4.5%.
Kennedy Wilson acquired the first trust deed on 360 Residences in
November 2010. When the company took title to the property in March
2011, it was vacant with unfinished interiors. The company converted the
use to apartments, completed $2 million of interior finishes and then
leased up and stabilized the property, which is now at 97% occupancy.
"The goal was to complete and then stabilize the asset, and we took 360
from a note to an income producing apartment building in ten months,"
said Robert Hart, president of KW Multifamily Management Group.
Over the past few years, Kennedy Wilson increased the rental income of
Arbor Creek, improving NOI by 22% since 2010. Recent upgrades to the
property include renovation of the leasing center, clubhouse and fitness
center in addition to paint and other exterior enhancements.
Kennedy Wilson's multifamily portfolio in the U.S. and Japan now
consists of ownership interests in 13,305 units, including deals
currently under contract.
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.
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SOURCE: Kennedy Wilson
Kennedy Wilson
Christina Cha
Director of Corporate
Communication
(310) 887-6294
[email protected]
www.kennedywilson.com