Kennedy Wilson Buys SoCal Multifamily Property for $43.7M
Kennedy Wilson, along with unnamed partners, has acquired Torrey Pines, a 251-unit multifamily property in West Covina, for $43.7 million.
By Dees Stribling, Contributing Editor
West Covina, Calif.—Kennedy Wilson, along with unnamed partners, has acquired Torrey Pines, a 251-unit multifamily property in West Covina, for $43.7 million. About $33 million of the purchase price was financed by Freddie Mac at 3.91 percent on a 10-year loan.
Torrey Pines is comprised of 21 wood-frame and stucco buildings built around six courtyards. The complex includes five pools, two spas, a playground and fitness center, and the buyers plan to complete renovations for about half of the units, including kitchen and bathroom upgrades. They will also improve the fitness center, leasing office and landscaping.
The property is located south of the I-10 freeway and roughly 20 miles east of downtown Los Angeles. It’s also within a healthcare hub that includes (among other healthcare-related facilities) Queen of The Valley Medical Center, which is the city’s top employer, West Covina Medical Offices and the West Covina Behavioral Health Offices.
Robert Hart, president of KW Multifamily Management Group, Kennedy Wilson’s management arm, notes that Torrey Pines is the newest market-rate property in the city, and that there are no multifamily developments in the pipeline. “Concessions and vacancy rates are perennially low due to a well-documented constrained supply, and demand is expected to remain high,” he says.
The acquisition fits in with Kennedy Wilson’s strategy of focusing primarily on apartments in supply-constrained, infill West Coast markets. Earlier this month, the company also bought the 544-unit Waterford in Hayward, Calif., for $86.5 million. All together, it and its partners have acquired about $6.6 billion in real estate assets since the beginning of 2010.
Kennedy Wilson’s holdings aren’t exclusively on the West Coast, however, since it also has about $550 million of assets under management in Japan. All together, including the latest acquisition and deals under contract, Kennedy Wilson owns interests in a little more 14,100 multifamily rental units.