Kennedy Wilson Completes Financing and Sale of Multifamily Properties in Bay Area
International real estate investment and services firm Kennedy
Wilson (NYSE: KW) today announced that it added a
supplemental loan to the existing financing on Summer House Apartments,
a 615-unit multifamily community that it acquired with one of its
investment partners in 2010. On December 31, 2012, the company and its
partner closed a $19.4 million Freddie Mac loan arranged by Berkeley
Point Capital. Including this transaction, the financing on Summer House
now totals $90.2 million at a fixed rate of 4.44% and maturity on
November 1, 2020. Kennedy Wilson’s initial investment in the property
was $2.8 million. Through this financing and previous property cash
flow, the company has received a total of $3.8 million of distributions.
Kennedy Wilson invested 15% of the equity in this property and, based on
the distributions to date, is receiving 30% of current distributions due
to its promoted interest in the property.
“This transaction exemplifies the company’s ability to produce profits
in a variety of ways,” said William McMorrow, chairman and CEO of
Kennedy Wilson. “We were able to take advantage of current financing
opportunities and return the company’s original equity while maintaining
ownership in a property located in a growing market. Additionally, we
were able to sell a property in the same area that we believe has
reached its stabilized value.”
On December 28, 2012, Kennedy Wilson, through its KW Property Fund III,
completed the sale of Rutherford Townhomes, a 66-unit apartment property
in Napa, California, for $8.7 million. The company’s KW Property Fund
III originally purchased the asset for $6.6 million in 2009, producing a
1.7x gross equity multiple after the sale. Kennedy Wilson owns
approximately 12% of the fund before its promoted interest.
Kennedy Wilson has an ownership interest in 14,764 multifamily units in
the U.S., Japan and Ireland, including 5,311 units in the greater San
Francisco Bay Area.
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.
