Kennedy Wilson Closes $363M of Multifamily Transactions
Capital recycling program executed through acquisition, disposition and
refinancing
BEVERLY HILLS, Calif.--(BUSINESS WIRE)--
Global real estate investment company Kennedy
Wilson(NYSE: KW) today announced a series of separate
multifamily transactions totaling $363 million including: the
acquisition of Alara Hedges Creek, a 408 unit apartment community built
in 1998 in a suburb of Portland, Oregon for $93 million; the disposition
of The Grove, a 331 unit apartment community built in 1964 in San Jose,
California for $96 million; and a $175 million refinance of Bella Vista
at Hilltop, a 1,008 unit apartment community built in 1988 located in
the San Francisco Bay Area.
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Alara Hedges Creek (Photo: Business Wire)
“These transactions allowed us to harvest gains, improve the quality of
our portfolio and lock in attractive long term financing,” said Kurt
Zech, President of Kennedy Wilson Multifamily Investments. “We were able
to generate excess capital through these transactions while growing the
cash flow of our portfolio.”
On Thursday, Kennedy Wilson acquired 100% of Alara Hedges Creek for $93
million, securing a $60 million 10-year fixed rate loan from Freddie Mac
at 3.59%, interest-only for 5 years. The loan’s interest rate was locked
in October. The $33 million equity investment was primarily funded from
the net sale proceeds of The Academy, a 175,000 sq. ft. office building
in North Hollywood, CA, which was sold in October. Alara Hedges Creek is
a low-density garden style community situated on 20 acres. The property
is located in the Portland suburb of Tualatin, near an abundance of
upscale retail destinations, recreation and entertainment options.
Kennedy Wilson’s value-add asset management strategy includes unit
renovations with upgrades to the appliances, countertops and flooring.
On Wednesday, Kennedy Wilson and its partner sold The Grove for $96
million, generating $58 million in net proceeds, including $29 million
to the company which equates to a 5.0x equity multiple over the life of
the investment. Kennedy Wilson held a 50% ownership interest in The
Grove.
On Wednesday, Kennedy Wilson refinanced Bella Vista at Hilltop, a
wholly-owned asset, with a new $175 million 10 year fixed-rate loan at
3.50% from Fannie Mae, interest-only for the entire term. The loan’s
interest rate was locked in September. The property previously had two
loans totaling $126 million at an average interest rate of 4.6%, of
which $91 million was due to mature in June 2017. This represented the
company’s largest debt maturity in 2017.
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 equity multiple figures that
we present for investments that we have sold represent historical
performance, and they are not guarantees of the future performance of
any our investments, which may yield significantly lower, or negative,
equity multiples. 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

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Investors
Kennedy Wilson
Daven Bhavsar, CFA
Director
of Investor Relations
310-887-3431
[email protected]
Source: Kennedy Wilson