Kennedy Wilson Sells $422M Portfolio

The six communities comprise a total of 2,199 units and are located across California, Nevada, Washington and Oregon.
Big Trout Lodge, Liberty Lake, Wash.

Kennedy Wilson has sold a six-property multifamily portfolio for $422 million. The communities comprise a total of 2,199 units and are located across four states: California, Nevada, Washington and Oregon. The sales are set to generate net proceeds of $104 million to the firm, which has a 41.3 percent ownership average within the assets.

“This portfolio sale puts us six months ahead of our Multifamily disposition plan for the year and creates additional liquidity for new opportunities in our core markets,” Kurt Zech, president of Kennedy Wilson’s Multifamily Group, told Multi-Housing News. “Looking ahead, we are focused on reinvesting in high-growth markets where we can unlock value in properties through management initiatives, asset rehabilitation, repositioning and creative recapitalization. Generally, we look to invest in markets with strong job creation, outstanding education systems and inherent supply constraints.”

The portfolio

The portfolio includes Slate Creek in Roseville, Calif.; Xander 3900 in Las Vegas; Big Trout Lodge in Liberty Lake, Wash.; Heatherbrae Commons in Milwaukie, Ore.; Montair at Somerset Hill in Tumwater, Wash.; and StonePointe in University Place, Wash. Each of the properties underwent exterior and interior renovations under Kennedy Wilson’s ownership.

Slate Creek, located at 1751 E. Roseville Parkway, offers 612 one- to three-bedroom units. Ranging from 701 to 1,368 square feet across 41 buildings, the community was purchased by Kennedy Wilson in July 2015 for $100 million, from DiNapoli Capital Partners. Xander 3900 is situated at 3900 Dalecrest Drive and was built in 1997. The property comprises 480 one- to three-bedroom floorplans across 34 buildings, ranging from 740 to 1,320 square feet. The firm bought the asset in August 2015 for $44.2 million, from HGA Capital. Found at 22809 E. Country Vista Drive, Big Trout Lodge houses 297 one- to three-bedroom apartments and is the newest property, having been constructed in 2000. Kennedy Wilson purchased the asset in November 2013 from The Wolff Co., for $29.9 million.

Slate Creek Apartments, Roseville, Calif.

Located at 10303 SE Bell Ave., the 174-unit Heatherbrae offers one- to- three-bedroom layouts with washer/dryers, fireplaces and vaulted ceilings. The property last changed hands in December 2015 when the firm purchased it from Guardian Real Estate Services. Montair at Somerset Hill, situated at 1704 Barnes Blvd. SW, was built in 1992 and features 396 apartments. The asset was acquired in July 2014 from Holland Partners for $42.8 million, as part of a $127 million portfolio transaction.  Lastly, StonePointe, found at 3806 78th Ave. Court W., has an occupancy of 92.9 percent as of April 2018. The community offers 240 one- to three-bedroom floorplans and was sold to Kennedy Wilson by Holland Partners in July 2014, for a price of $26 million.

In 2018 alone, Kennedy Wilson completed $202 million in acquisitions across the western U.S. and Ireland. In February, the firm purchased two $93 million Salt Lake City communities, Santa Fe Apartments in Cottonwood Heights for $79.5 million and Creekview Apartments in Midvale for $13 million.

Images courtesy of Kennedy Wilson