Global real estate investment and services firm Kennedy
Wilson (NYSE: KW) today announced that the company acquired
Montiavo at Bradley Square, a 208‐unit apartment community located in
Santa Maria, CA. The property was purchased for $47 million, with the
company investing $10.4 million of equity in the transaction (inclusive
of closing costs) and securing $37.7 million of 10 year mortgage
financing on the property through Freddie Mac with a fixed rate of
3.77%, interest only for five years.
Montiavo at Bradley Square, Santa Maria, CA (Photo: Business Wire)
“Montiavo’s condo-quality construction, superior unit mix of all two and
three-bedroom units with attached garages and low density make it a very
attractive investment opportunity,” said Kurt Zech, president of Kennedy
Wilson Multifamily Investments. “Kennedy Wilson has a long history of
successful investment in the Central Coast, and Montiavo will benefit
from our existing management infrastructure in Santa Maria and the
nearby cities of Santa Barbara and Lompoc. This value-add deal offers a
very attractive spread between the in-place cap rate and the fixed cost
of financing, resulting in cash-on-cash returns superior to those
typically achievable on an asset of this vintage and quality.”
Built in 2004 as condominiums, Montiavo is an institutional quality,
luxury residential property located in the desirable master planned
community of Bradley Square. All of the property’s units are split-level
townhome style, with full size washers and dryers. Forty two percent of
the units are two bedroom with two baths, 58% of the units are three
bedroom with two baths, and all have a direct-access garage for two
cars. Common areas include a fitness center, spacious pool and sundeck,
business center and clubhouse/lounge.
Kennedy Wilson plans to implement common area improvements, including
converting the existing fitness center into an innovative indoor/outdoor
gym and renovating the interiors of select units, offering residents a
market-leading rental product. In addition, the company is exploring the
installation of drought-tolerant landscaping to reduce water usage, and
property expenses as well as to mitigate the environmental impact of the
property.
Kennedy Wilson’s global multifamily portfolio now totals more than
25,000 units (including 5,485 units currently under contract to purchase
and 757 units currently under contract to sell).
About Kennedy Wilson
Founded in 1977, Kennedy Wilson is a vertically integrated global real
estate investment and services company headquartered in Beverly Hills,
CA, with 25 offices in the U.S., U.K., Ireland, Spain, Jersey and
Japan. The company, on its own or with partners, invests
opportunistically in a variety of real estate related investments,
including commercial, multifamily, loan purchases and originations,
residential, and hotels. Kennedy Wilson offers a comprehensive array of
real estate services including investment management, property services,
auction, conventional sales, brokerage and research. For further
information on Kennedy Wilson, please visit www.kennedywilson.com.
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