Kennedy Wilson Snags Community for $43M
HOLLADAY, UT-Kennedy Wilson has acquired Sandpiper Apartments, a 366-unit multifamily community here, for $43.5 million. The firm has not released the name of the seller, but industry sources unrelated to the deal report that the seller was DiNapoli Capital.
The new owner invested $12 million of equity in the transaction and has financed $31.5 million with Centerline Financial at 4.9% with eight years remaining. According to Kennedy Wilson, the property, completed in 1999, is located in a prestigious residential neighborhood in this Salt Lake City suburb and consists of 46 buildings on 36 acres.
The firm plans to reposition the property with more than $5 million of renovations including a new leasing facility, interior-unit upgrades, a new fitness center and landscaping enhancements.
“Holladay is considered one of the most affluent communities in the Salt Lake County MSA, and the property is in close proximity to major freeways, the downtown central business district, Salt Lake City International Airport and Park City, as well as some of the best schools and largest employers in the area,” said Bob Hart, president of K Multifamily Management Group, in a prepared statement.
Together with its institutional partners, Kennedy Wilson has acquired approximately $6.8 billion of real estate and real estate-related debt since the beginning of 2010, and the firm’s multifamily portfolio in the US, Ireland and Japan totals 14,613 units.
In other Kennedy Wilson news, the firm intends to offer, subject to market conditions and other factors, an additional $75 million of its 8.75% notes due 2019. The additional notes, to be Kennedy Wilson's senior unsecured obligations guaranteed by Kennedy-Wilson Holdings, Inc. and certain company subsidiaries, are being offered to "qualified institutional buyers" pursuant to Rule 144A of the Securities Act of 1933 and outside the US to persons in compliance with Regulation S under the Securities Act.
Following the required exchange offer of the additional notes for registered notes, the company expects that the registered notes will be treated, together with the existing $250 million of 8.75% senior notes due 2019 it previously issued, as a single series of debt securities. Kennedy Wilson intends to use the net proceeds from the additional notes for working capital and general corporate purposes, including future acquisitions and co-investments.
As GlobeSt.com previously reported, last month the Beverly Hills-based real estate investment and services firm purchased the Academy Tower, a 175,012-square-foot office building at 5200 Lankershim Blvd. in North Hollywood, CA, for $48 million. The building, which was completed in 1991, was 97% leased to tenants including Endemol, IPPT and Starcom Worldwide at the time of purchase.
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