Regions West | Seattle/Portland
July 1, 2008
By: Scott Baltic, Contributing Editor
Kennedy Wilson Multifamily Management Group Ltd., the multi-family investment division of Kennedy Wilson, has acquired two Class B apartment communities in the Seattle area for a total of just over $117 million.
Both deals relied on overseas investors for the majority of the equity, and in both cases GE provided the debt.
The company closed yesterday on its purchase of Avalon Redmond, a 400-unit apartment community in Redmond, Wash., and closed last Friday on Indigo Springs, a 278-unit property bordering the cities of Renton and Kent, Wash.
These acquisitions increase the number of units owned and managed by KW Multifamily in the Pacific Northwest to approximately 3,000 in seven major properties valued at more than $400 million.
In the current market, Eddie Ring, senior managing director of KW Multifamily, told CPN, “Everything the company does has an opportunistic side to it.” That said, although Avalon Redmond was KW’s first deal with Dubai Investment Group, the undisclosed Japanese partner on the smaller deal is one with whom KW has an established relationship, Ring said.
KW Multifamily and its partners, including Dubai Investment Group, purchased Avalon Redmond from Avalon Bay for $81.25 million. The 24-acre property was built in 1983 and comprises a mix of one-, two- and three-bedroom units in 71 two- and three-story wood-framed buildings, plus a clubhouse and leasing center. Amenities include a pool, two saunas, a fitness center, indoor spa, two tennis courts and a cyber café. The company plans to invest $4.5 million in renovating the property, including upgrades to unit interiors and finishes and a complete overhaul of the clubhouse.
Indigo Springs was acquired by KW Multifamily and its partners, among them a large Japanese institutional investor, from Equity Residential for $36 million. The community consists of 25 garden-style buildings, most of which are in a natural wetland setting. Built in 1991 with wood framing and vinyl siding, the property has one-, two- and three-bedroom units. Amenities include a clubhouse with a lounge and full kitchen, a fitness center, an outdoor pool and spa, an outdoor basketball court, and a children’s play area. A $3.3 million renovation will modernize the apartment interiors, enhance the common areas, redesign the clubhouse interior and overhaul the fitness center. In addition, the purchase includes a 1.25-acre former inholding home site that will let KW add more green space and about 20 more units, Ring said.
Also last Friday, CPN reported that Kennedy Wilson had purchased an interest in two multi-family properties in Richmond, Calif., both owned by Emerald Fund. The ownership stake was purchased through a joint venture by two Kennedy Wilson funds and was part of a new strategic alliance with Emerald.
Also as reported in CPN, the parent company is moving toward closing on a 16-story, 214,000-square-foot office building in Los Angeles’ Wilshire submarket. The purchase is for an undisclosed sum.
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By: Scott Baltic, Contributing Editor
Kennedy Wilson Multifamily Management Group Ltd., the multi-family investment division of Kennedy Wilson, has acquired two Class B apartment communities in the Seattle area for a total of just over $117 million.
Both deals relied on overseas investors for the majority of the equity, and in both cases GE provided the debt.
The company closed yesterday on its purchase of Avalon Redmond, a 400-unit apartment community in Redmond, Wash., and closed last Friday on Indigo Springs, a 278-unit property bordering the cities of Renton and Kent, Wash.
These acquisitions increase the number of units owned and managed by KW Multifamily in the Pacific Northwest to approximately 3,000 in seven major properties valued at more than $400 million.
In the current market, Eddie Ring, senior managing director of KW Multifamily, told CPN, “Everything the company does has an opportunistic side to it.” That said, although Avalon Redmond was KW’s first deal with Dubai Investment Group, the undisclosed Japanese partner on the smaller deal is one with whom KW has an established relationship, Ring said.
KW Multifamily and its partners, including Dubai Investment Group, purchased Avalon Redmond from Avalon Bay for $81.25 million. The 24-acre property was built in 1983 and comprises a mix of one-, two- and three-bedroom units in 71 two- and three-story wood-framed buildings, plus a clubhouse and leasing center. Amenities include a pool, two saunas, a fitness center, indoor spa, two tennis courts and a cyber café. The company plans to invest $4.5 million in renovating the property, including upgrades to unit interiors and finishes and a complete overhaul of the clubhouse.
Indigo Springs was acquired by KW Multifamily and its partners, among them a large Japanese institutional investor, from Equity Residential for $36 million. The community consists of 25 garden-style buildings, most of which are in a natural wetland setting. Built in 1991 with wood framing and vinyl siding, the property has one-, two- and three-bedroom units. Amenities include a clubhouse with a lounge and full kitchen, a fitness center, an outdoor pool and spa, an outdoor basketball court, and a children’s play area. A $3.3 million renovation will modernize the apartment interiors, enhance the common areas, redesign the clubhouse interior and overhaul the fitness center. In addition, the purchase includes a 1.25-acre former inholding home site that will let KW add more green space and about 20 more units, Ring said.
Also last Friday, CPN reported that Kennedy Wilson had purchased an interest in two multi-family properties in Richmond, Calif., both owned by Emerald Fund. The ownership stake was purchased through a joint venture by two Kennedy Wilson funds and was part of a new strategic alliance with Emerald.
Also as reported in CPN, the parent company is moving toward closing on a 16-story, 214,000-square-foot office building in Los Angeles’ Wilshire submarket. The purchase is for an undisclosed sum.
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