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LOS ANGELES — Capri Capital Partners LLC, on behalf of an institutional investor, and Kennedy Wilson (NYSE: KW) have acquired all of the leasehold interest in Esprit, a multifamily mixed-use project in Los Angeles, for $225 million. The 18-acre property includes 437 units and a 227-slip anchorage facility in Marina del Ray.
The five-building apartment complex offers a range of studio to four-bedroom units that all feature views of the water, in-unit washer and dryers, 9-foot vaulted ceilings and private patios. The community also includes a pedestrian promenade that runs alongside the waterfront directly in front of the apartment complex.
“Esprit is considered the finest multifamily mixed-use property in Marina del Rey, and an off-market transaction to acquire a property of this size and quality is very rare,” says Kurt Zech, president of Kennedy Wilson multifamily management group. “The property was stabilized at 94 percent occupancy in late 2012 after a lengthy three-year lease-up period and still has plenty of upside for rental growth in a steadily improving economy.”
Beginning immediately, the companies will begin a series of renovations at Esprit to enhance the marketability of the asset. Capri and Kennedy Wilson will invest approximately $5.3 million in additional capital to enhance the leasing center, resident facilities and landscaping, as well as upgrade unit interiors.
“Capri’s investment strategy is to actively acquire high-quality Class A properties in high-barrier markets with supply-demand imbalances and strong economic, demographic and income trends,” says Ken Lombard, partner of investments for Capri. “Esprit is truly an iconic asset that meets our investment strategy and will be highly complementary to our investor’s real estate portfolio.”
Brian Eisendrath and Troy Tegeler of CBRE secured financing for the transaction through Fannie Mae.
Chicago-based Capri Capital Partners is a real estate investment advisory firm that was founded in 1992. As of March 31, diversified assets managed on behalf of its pension fund and other institutional clients totaled $3.4 billion.
Kennedy Wilson, based in Beverly Hills, Calif., is an international real estate investment company that offers auction, conventional sales, research and investment management services. The company’s stock price closed at $16.64 per share on Friday, up from trading at $13.35 per share this time last year.
— Brittany Biddy