Kennedy Wilson and Partner Acquire Multifamily Community in Seattle, WA for $90M
Acquisition funded by recent disposition as capital recycling continues
BEVERLY HILLS, Calif.--(BUSINESS WIRE)--
Global real estate investment company Kennedy
Wilson (NYSE: KW) today announced that the company and an equity
partner acquired Equinox, a 204-unit multifamily community in Seattle,
Washington, for $90 million. The company and its equity partner invested
$38 million of equity (inclusive of closing costs), of which the
company’s share is 51%. The partnership also secured a 10-year loan of
$53 million through Freddie Mac at a rate of LIBOR + 2.11% with interest
only for five years. The acquisition was primarily funded by the company
and its equity partner with $24 million of net proceeds from the sale of
the Reserve, a multifamily community in Federal Way, Washington,
completed in September 2016.
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Equinox (Photo: Business Wire)
“The acquisition of Equinox represents a unique investment opportunity
to acquire a well-located asset designed with condo finishes and
featuring large floorplans and panoramic lake and skyline views,” said
Shem Streeter, Managing Director of Kennedy Wilson Multifamily
Investments. “Both transactions in the greater Seattle area demonstrate
our ability to recycle capital from an asset where we realized
significant value creation into a high-quality asset in a thriving
submarket with future asset management potential.”
Equinox is a class-A apartment community located in Seattle, WA. The
property was built in 2009 and consists of 204 apartments with stainless
steel appliances, custom cabinetry, crown molding, and granite
countertops. Equinox’s amenity package includes a rooftop deck with lake
views, a large recreational game room with a kitchen, and a fitness
center with a yoga studio. The property is one mile away from the South
Lake Union submarket and within walking distance to employers such as
Amazon’s headquarters, Facebook, the Fred Hutchinson Cancer Research
Center, and a future 607,000 sq. ft. Google campus. Equinox is also
walking distance to many shops and restaurants, and is conveniently
located within one block of an I-5 exit, providing quick access to the
SR-99 and downtown Seattle.
About Kennedy Wilson
Kennedy Wilson (NYSE:KW) is a global real estate investment company. We
own, operate, and invest in real estate both on our own and through our
investment management platform. We focus on multifamily and commercial
properties located in the Western U.S., UK, Ireland, Spain, Italy and
Japan. To complement our investment business, the Company also provides
real estate services primarily to financial services clients. For
further information on Kennedy Wilson, please visit www.kennedywilson.com.
Special Note Regarding Forward-Looking Statements
Statements in this press release that are not historical facts are
“forward-looking statements” within the meaning of U.S. federal
securities laws. These forward-looking statements are estimates that
reflect our management’s current expectations, are based on assumptions
that may prove to be inaccurate and involve known and unknown risks.
Accordingly, our actual results or performance may differ materially and
adversely from the results or performance expressed or implied by these
forward-looking statements, including for reasons that are beyond our
control. For example, we may not be able to maintain our current
acquisition or disposition pace or identify future properties to acquire
on terms we consider attractive, and our current property portfolio may
not perform as expected. Furthermore, the capitalization rate of our
investments represents the net operating income of an investment for the
year preceding its acquisition or disposition divided by the purchase or
sale price. Capitalization rates represent historical performance and
are not a guarantee of future net operating income. Accordingly, you
should not unduly rely on these statements, which speak only as of the
date of this press release. We assume no duty to update the
forward-looking statements, except as may be required by law.
KW-IR

View source version on businesswire.com: http://www.businesswire.com/news/home/20161013005367/en/
Investors:
Kennedy Wilson
Daven Bhavsar, CFA
Director
of Investor Relations
310-887-3431
[email protected]
Source: Kennedy Wilson