BEVERLY HILLS, Calif.--(BUSINESS WIRE)--Oct. 31, 2012--
International real estate investment and services firm Kennedy
Wilson (NYSE: KW) today announced that the company acquired
Regency Tower Apartments, a 178-unit apartment building in Oakland, CA,
for $31 million. Fannie Mae provided a $23.5 million loan at LIBOR +
2.07% for ten years. The company invested approximately $8.8 million of
equity in the transaction and plans to apply the excess funds (after
paying the purchase price) toward closing costs, renovations at the
property and other expenses.
“Oakland has enjoyed tremendous growth over the past two years,” said
Bob Hart, president of KW Multifamily Management Group. “The area has
experienced a gentrification and spillover effect from the rapidly
increasing rents in San Francisco. Rent growth in Oakland was 10% in
2011 and 7.8% as of the first quarter of this year, which is the fourth
largest increase in the country. With our deep experience in this
market, coupled with our proven expertise in adding value to nearly
4,000 units in the East Bay over the past decade, Regency Tower is
perfectly situated to complement our portfolio there. Additionally,
rents at the property are currently below market with substantial
upside.”
The 18-story building was built in 1975 and includes amenities such as a
fitness center, dog park, pool and spa. The company plans to upgrade the
property in a more than $3 million renovation, completing unfinished
unit renovations, rebranding the community, improving common areas and
adding a resident lounge.
Kennedy Wilson, together with its institutional partners, has acquired
approximately $6.7 billion of real estate and real estate related debt
since the beginning of 2010. The company’s multifamily portfolio in the
U.S., Ireland and Japan totals 14,128 units.
About Kennedy Wilson
Founded in 1977, Kennedy Wilson is an international real estate
investment and services company headquartered in Beverly Hills, CA with
24 offices in the U.S., U.K., Ireland, Spain 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., U.K., Ireland 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