Source: Kennedy Wilson / #Apartments #Multifamily
BEVERLY HILLS, CA - Global real estate investment and services firm Kennedy Wilson announced that the Company and its equity partners completed the sale of a 159-unit multifamily property in the greater San Francisco Bay Area for $55 million. The apartment community was acquired by Kennedy Wilson and its partners in 2013 after which Kennedy Wilson implemented a value-add asset management program and grew the NOI by approximately 20% prior to sale.
“Kennedy Wilson was able to create substantial value in this property through the implementation of an institutional asset management program,” said Kurt Zech, president of Kennedy Wilson Multifamily Investments. “This was an opportune time to selectively dispose of a handful of investments in which the Company had smaller ownership interests. With that said, we continue to focus on growing the income in our core portfolio and strategically adding units to our overall multifamily platform.”
Since September 30, 2015, the Company and its partners have sold six multifamily properties totaling 1,997 units located in the Western U.S. for gross sales proceeds of $479 million. The Company had a 22% weighted average ownership in these joint venture investments and the sales were completed at an average cap-rate of 4.9%. The net proceeds (including promoted interests) to Kennedy Wilson were $57 million, which equates to an approximate $35 million cash profit on these investments. Kennedy Wilson’s global multifamily portfolio has grown by approximately 3,500 units in the past 12 months and now stands at over 24,000 units. Kennedy Wilson has an approximate 48% weighted average ownership interest in this portfolio.
For the full year of 2015, the Company and its equity partners (including KWE) completed over $3 billion of acquisitions and over $2 billion of dispositions.