BEVERLY HILLS, CA - International real estate investment and services firm Kennedy Wilson (NYSE: KW) announced that the company’s joint venture with The LeFrak Organization has refinanced two of its multifamily properties with new debt in the amount of $56.4 million at an average interest rate of 4.6%.
The company completed financing for The Grove, a 331-unit community in San Jose, CA on Thursday. Terms include a seven-year fixed rate of 4.34% on $32.3 million of new debt. Financing for Indigo Springs, a 278-unit community in Kent, WA closed today, and terms include a ten-year fixed rate of 4.96% on $24.1 million of new debt.
“These assets are located in our target markets, where we are seeing improved operating fundamentals and solid rent growth,” said Robert Hart, president of KW Multifamily Management Group. “We were very pleased to be in a position to take advantage of the low interest rate environment and obtain very attractive Fannie Mae fixed rate financing, which will provide Kennedy Wilson and its investors with double digit cash-on-cash returns for these assets.”
Kennedy Wilson owns a total of 12,906 multifamily units across the western U.S. and Japan.
Founded in 1977, Kennedy Wilson is an international real estate investment and services company headquartered in Beverly Hills, CA with 23 offices in the U.S., Europe and Japan. The company offers a comprehensive array of real estate services including auction, conventional sales, property services and investment management. Through its fund management and separate account businesses, Kennedy Wilson is a strategic investor of real estate investments in the U.S., Europe and Japan.
Source: Kennedy Wilson