JV Acquires 400-Unit Apartment Community

BEVERLY HILLS, CA - International real estate investment and services company Kennedy Wilson (NYSE: KW), RECP/Urban Partners and Capri Capital Partners, LLC on behalf of Capri Urban Investors, LLC today announced the acquisition of Serenade, a 400-unit apartment community in Oxnard, CA, from the California Urban Investment Partners (CUIP) for a purchase price of $81.5 million.

"Serenade is a rare core apartment investment opportunity and great addition to our portfolio of multifamily properties in California," Robert Hart, president and CEO of Kennedy Wilson Multifamily Management Group, commented. "Our focus has been on supply constrained, infill West Coast markets and this acquisition is a perfect fit for our strategy."

Serenade is a resort style community that is part of RiverPark, an award winning master planned development. RiverPark covers 702 acres and includes retail options such as Whole Foods, Target and REI in addition to entertainment, offices, schools and 14 parks. Development in the County of Ventura and in the city of Oxnard is subject to a number of slow growth initiatives collectively known as Save Open-space and Agricultural Resources (SOAR). Pursuant to these laws, future development on the scale of RiverPark is virtually impossible for a minimum of 18 years without voter approval.

"Serenade is an institutional quality, well designed core asset that is located in a market with significant barriers to entry and will be complimentary to the other investments made within our Urban Fund to-date," Kenneth Lombard, president of Capri Urban Investors and partner at Capri Capital Partners, stated. "We are very excited to announce the acquisition of Serenade and our first joint venture with Kennedy Wilson."

This acquisition represents the second major joint venture between Kennedy Wilson and RECP/Urban Partners. Paul Keller, founding principal of RECP/Urban Partners, said, "We are pleased to partner with Kennedy Wilson and Capri Capital Partners, especially on such a high quality asset as Serenade, which we originally developed. We continue to see the excellent rent growth potential as the RiverPark master plan community and The Collection shopping center reach completion in the years ahead."

Serenade contains 14 residential buildings with a wide variety of 1, 2, and 3-bedroom residences. Features of the community include a fully equipped fitness center with cardio theater machines, full sound system, yoga and pilates floor and weight machines, a clubhouse with large screen TV, a resort style pool with spa, sundeck, barbecues, an outdoor fire pit and a 1.3 acre public park.

Founded in 1977, Kennedy Wilson is an international real estate investment and services company headquartered in Beverly Hills, CA with 21 offices in the U.S. and Japan. The company offers a comprehensive array of real estate services including property and asset management, brokerage and auction services, and construction and trust management. Through its fund management and separate account businesses, Kennedy Wilson is a strategic investor and manager of real estate investments in the U.S. and Japan.

Urban Partners is a real estate planning, investment, development and management firm. The company pursues select market niches where complexity or innovation create exceptional potential for its partners and clients. With highly-specialized expertise in urban entitlement processes, complex financial structures and alternative construction methods, Urban Partners identifies opportunities which are not widely followed or understood, resulting in competitive quality and marketing advantages and superior financial performance.

Capri Capital Partners, LLC is the investment manager of Capri Urban Investors, LLC, a real estate private equity fund. Capri Capital Partners, LLC is an institutional real estate investment advisory firm, investing and managing commercial real estate properties and portfolios since 1992. Capri offers a broad spectrum of equity and debt products to its customers through separate account and commingled fund vehicles. Diversified assets managed on behalf of its pension fund and other institutional clients totaled $3.534 billion in fair market value as of June 30, 2010.