SEATTLE-Kennedy Wilson and its partners have acquired Club Palisades, a 750-unit multifamily community in Federal Way, WA. The property is the second largest multifamily asset in the Seattle metro area, according to a prepared statement, and was purchased as an REO from a group of insurance companies.
Kennedy Wilson capitalized the transaction with its partners, Fairfax Financial, the LeFrak Organization and KW Property Fund III, along with new financing of $46.75 million through Fannie Mae.
“We are very pleased with this acquisition,” says Robert Hart, president and CEO of KW Multifamily Management Group. “We were able to purchase it significantly below replacement cost, and the property is well positioned in the market. We believe that the Seattle metro area is poised for significant rebound in rental rates as the local job markets recover.”
Kennedy Wilson plans to pursue a value-added rehab program and upgrade many of the units to position Club Palisades for growth in the market. The acquisition brings Kennedy Wilson’s Seattle portfolio to seven communities, comprised of 3,163 units. The company and its partners now own 10,786 multifamily units across the US and Japan, with an additional 492 units currently under contract.
Kennedy Wilson did not return GlobeSt.com queries pertaining to the replacement cost, total acquisition price or the identity of the sellers.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
