Kennedy Wilson Adds 188-Unit Asset to Calif. Portfolio
- Apr 16, 2013
Hayward, Calif.—Kennedy Wilson has expanded its portfolio in Northern California with the addition of Montelena Apartments. The 188-unit community was purchased from a private investment group for $34 million. Kennedy Wilson acquired the property with its investment partners, investing $11 million of equity into the transaction (with $6 million coming directly from Kennedy Wilson). Approximately $27 million in fixed-rate financing was placed with Freddie Mac through CBRE Capital Markets at 3.5 percent for 10 years.
“Montelena is a complementary investment to our recent acquisition of The Bridge, a 544-unit apartment project located three miles to the south of this asset,” says Bob Hart, president of KW Multifamily Management Group. “The property is ideally situated adjacent to the South Hayward BART station that connects its residents to all major employment centers of the East Bay, South Bay, Silicon Valley and San Francisco.”
The company and its partners plan to invest approximately $4 million in Montelena to upgrade the exterior finishes, enhance the clubhouse and fitness center and improve the interior units.
American Campus Communities enters affiliate agreement with USF
Tampa, Fla.—American Campus Communities is now getting direct referrals from the University of South Florida for two of its owned properties in walking distance of the Tampa campus. The program is part of the student housing REIT’s strategy to have its properties be classified as “primary residential” space for the school.
“We’re very pleased to have these communities affiliated with the University,” says Greg Dowell, American Campus chief operating officer. “Avalon Heights and The Province are high-quality communities with modern student amenities and in close proximity to campus. We look forward to assisting the University of South Florida in achieving its student housing goals.”
The Avalon Heights community is located along the north border of the USF Tampa campus and is designed to accommodate up to 754 residents in 210 fully furnished apartments. The gated community includes a fitness and recreation center, a courtesy patrol officer and an after-hours on-call staff.
The Province community is located less than a half-mile south of the USF Tampa campus and is designed to accommodate up to 947 individuals in 287 fully furnished apartments. The property features a variety of residential floor plans in one-, two-, three- and four-bedroom configurations in traditional apartments or cottages. The clubhouse area includes a movie theater, poker tables, billiard table, foosball, game room, 24-hour fitness center, tanning beds, 24-hour business center and two resort-style pools with sun deck.
NorthMarq arranges $28.2M Fannie Mae mortgage
Orem, Utah—Mark Grace, vice president of NorthMarq’s Los Angeles regional office, arranged acquisition financing of $28.2 million for Pinnacle Canyon View Apartments, a 288-unit, market-rate multifamily property located at 1401 S. Sandhill Road in Orem, Utah.
Financing was based on a 15-year term with three years of interest-only and then a 30-year amortization schedule. NorthMarq arranged this financing for the borrower through its affiliate AmeriSphere Multifamily Finance LLC, a Fannie Mae DUS Lender.
“The borrower sought maximum interest-only and long-term financing for the purchase of a stabilized multifamily asset,” Grace says. “NorthMarq was able to deliver Fannie Mae terms that accommodated the borrower’s request for longer term financing with a low rate and maximum loan proceeds. We were able to deliver considerably higher proceeds as well as a longer fixed rate term and more years of interest only than other capital providers.”