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.
Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
