Kennedy Wilson Sells Apartments for $147M

BEVERLY HILLS, CA-Kennedy Wilson's Multifamily Management Group has sold four properties throughout California totaling 992 units in 30 days for an aggregate of $147 million. The sales follow the company's repositioning of the assets under Kennedy Wilson's ownership, according to Bob Hart, president and CEO of KW Multifamily, which is a subsidiary of Kennedy Wilson.

Hart says that the locally based company will reinvest the proceeds of the sales into other multifamily properties that meet the firm's criteria of under-performing assets in urban markets. He adds that Kennedy Wilson sees continued opportunities in the multifamily arena in light of the changes occurring in the housing and capital markets.

“Given the current disruptions in the availability of capital for home ownership and mounting defaults and foreclosures, we seek continued opportunity for increasing rents in well-positioned properties,” Hart says. Specifically, Hart says that KW Multifamily sees opportunities in multifamily properties in major urban West Coast markets, including California and the Pacific Northwest.

The four properties that KW Multifamily sold include the 328-unit Windscape Village Apartments on North L Street in Lompoc, the 208-unit Country Oaks Apartments on East Enos Drive in Santa Maria, the 256-unit Somerset on Garfield complex on North Garfield Avenue in Montebello and the 200-unit Creekside Apartments at 1800 Stokes St. in San Jose.

The Windscape sold for $42.3 million, the County Oaks for $30.3 million, the Somerset on Garfield for $39.3 million and the Creekside for $35.6 million. LeFever Mattson Inc. bought the Windscape and the County Oaks, Advanced Real Estate Services Inc. bought the Somerset on Garfield and Klingbeil Capital Management acquired the Creekside.

Including the recent transactions, KW Multifamily has purchased more than 12,000 apartments in California, Oregon and Washington in deals totaling $1.4 billion.