BEVERLY HILLS, CALIF. — Global real estate investment firm Kennedy Wilson (NYSE: KW) has sold a 2,199-unit multifamily portfolio mostly located on the West Coast for $422 million. The Beverly Hills-based company had a 41.3 percent average ownership stake in the six properties. The buyer was undisclosed.
The properties in the portfolio include:
• Slate Creek in Roseville, Calif. (612 units)
• Xander 3900 in Las Vegas (480 units)
• Big Trout Lodge in Liberty Lake, Wash. (297 units)
• Heatherbrae Commons in Milwaukie, Ore. (174 units)
• Montair at Somerset Hill in Tumwater, Wash. (396 units)
• StonePointe in University Place, Wash. (240 units)
The garden-style apartment communities were originally built between 1989 and 1999. During Kennedy Wilson’s ownership the properties have undergone improvement plans, including exterior renovations and unit upgrades.
The asset sales generated cash proceeds of $223 million for Kennedy Wilson, its commingled funds and equity partners, including net proceeds to Kennedy Wilson of approximately $104 million.
“This portfolio sale enables us to recycle capital into other strategic investment opportunities,” says William McMorrow, chairman and CEO of Kennedy Wilson. “These six properties represent the successful rollout of our value-add asset management initiatives, and we are pleased to see those efforts create compelling value for our investors.”
Kennedy Wilson has completed $202 million in multifamily acquisitions year-to-date totaling 956 units in the Western United States and Ireland. The company also has 2,530 multifamily units under development or in the design stages.
— John Nelson