Source: Kennedy Wilson / #Apartments #Multifamily
ROSEVILLE, CA - Global real estate investment and services firm Kennedy Wilson announced that the company and its equity partners have, in an off-market transaction, acquired Slate Creek at Johnson Ranch, a 612-unit apartment community located in Roseville, California, for $100 million. The company and its equity partners invested an aggregate of $38.5 million of equity in the transaction (inclusive of closing costs), of which the company’s initial share is approximately 12.5%. As part of the transaction, the company and its equity partners assumed $63 million of debt.
“Slate Creek benefits from strong area incomes and a wide base of local employers, providing us the opportunity to execute a robust value-add plan on a low density property,” said Kurt Zech, president of Kennedy Wilson Multifamily Investments. “The property is situated on a 39-acre site, which is nearly impossible to replicate in this submarket.”
Slate Creek is located within an upscale residential neighborhood in Roseville, which has a median area home price of $715,000. The property is in close proximity to downtown Sacramento, catering to employees of nearby companies such as Hewlett-Packard, Kaiser Permanente, Oracle, Intel and Sutter Health Systems.
Year to date, Kennedy Wilson has acquired interests in 6,449 multifamily units in the Western U.S. at an average cap rate of approximately 7.0%. With this acquisition, Kennedy Wilson’s global multifamily portfolio totals over 26,000 units.