BEVERLY HILLS, CA - International real estate investment and services company Kennedy Wilson (NYSE: KW) today announced that the firm has entered into an equity joint venture with PCCP to complete its acquisition of a large apartment community in Northern California.
"We found this opportunity compelling because it allowed us to invest new equity into an over-leveraged capitalization with accretive assumable debt," stated Rob Cohen, senior vice president of PCCP. "We invested the new capital at an attractive going-in yield and cost basis for an in-fill apartment community that offered an affordable alternative to residents compared to surrounding for-sale housing."
Robert Hart, president and CEO of Kennedy Wilson Multifamily, commented, "We are excited to join forces with PCCP on this significant deal, which leverages our services platform and increases our Northern California portfolio to over 2,500 units."
The venture, which is the third between the two firms, purchased a 100% equity interest in the property and restructured a three-year bridge loan with Bank of America to capitalize the deal.
"Our client team has worked with Kennedy Wilson for many years," said Marchell Hilliard, senior vice president of Bank America Merrill Lynch Commercial Real Estate Banking. "We are pleased to be able to provide financing that will make an impact in the City of Alameda."
Founded in 1977, Kennedy Wilson is an international real estate investment and services company headquartered in Beverly Hills, CA with 22 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.
PCCP, LLC, formerly known as Pacific Coast Capital Partners, is a private firm focused on first mortgage loans and opportunistic equity capital for real estate in the United States. With offices in New York, Los Angeles, San Francisco and Sacramento, PCCP is known for its ability to underwrite complex situations and craft effective solutions. PCCP provides capital to the entire spectrum of real estate projects and capital structures and is actively seeking senior loan opportunities and workout situations to recapitalize quality projects.
Source: Kennedy Wilson