Kennedy Wilson, Capri Capital Buy Suburban Seattle Apartments

An apartment in Bothell, Wash., trades for $45.8 million; Waterton Associates completes a 100-unit purchase in New Jersey; and a Hollywood micro-unit building trades for $14.75 million.

bf2-1-167webBothell, Wash.—Kennedy Wilson and Capri Capital Partners have acquired Bailey Farm Apartments, a 372-unit community located in the Seattle suburb of Bothell. The asset was purchased from The Wolff Co. for $91.5 million, including $45.8 million of debt through a life insurance company. The transaction follows two related acquisitions of a total of 456 apartments in El Cerrito, Calif., and Spokane, Wash., completed in December 2013.

“We are pleased to have completed the acquisition of this property following the purchases of Village at Town Center and Big Trout Lodge in December,” says Kurt Zech, president of Kennedy Wilson’s Multifamily Management Group. “All three of these properties are very attractive assets acquired off market that complement our existing Western U.S. portfolio.”

RIV-BAILEY-fF84Bailey Farm Apartments was built in 2013 and fits at the foot of a natural preserve next to North Creek Park. Amenities include a swimming pool and spa, a barbecue and picnic area, fire pit, yoga studio and a 24-hour fitness center.

“Our investment in Bailey Farm Apartments highlights Capri’s continued interest in investing in high quality multifamily assets located in markets with strong underlying fundamentals,” adds Ken Lombard, vice chairman, investments and partner at Capri Capital Partners. “We are pleased to be teaming up with Kennedy Wilson on this off-market lease-to-core investment, which is poised to capture the growing local residential demand, and we look forward to contributing to the ongoing revitalization of the Bothell market.”

Waterton Associates completes 100-unit N.J. multifamily purchase

InfinityEdgewater, N.J.—Waterton Associates has picked up Infinity Apartments, a 100-unit apartment community located in Edgewater, N.J. This is the company’s second acquisition in 2014. Waterton Residential will oversee the initial lease up and manage the community.

The acquisition has made on behalf of Waterton’s closed end, value-add fund and in conjunction with Clal US, a 49 percent co-investment partner. Clal is a subsidy of Cal Insurance.

Infinity2“Infinity Apartments is a well-built, luxury community in a great location,” says Waterton’s Max Peek, senior vice president of East Coast acquisitions. “We are excited to complete this acquisition and look forward to continuing to expand our portfolio in the New York metro area.”

Infinity is a recently built Class A mid-rise. Amenities include a business center, resident meeting room, and a fitness center with a sauna and steam room. The property is located within two miles of the Edgewater and the Port Imperial/Weehawken Ferry Landings, which provide 15 minute and 10 minute access into Midtown Manhattan, respectively.

Hollywood micro unit building trades for $14.75M

Los Angeles—An affiliate of privately held real estate investment firm Vista Investment Group has sold the WhitleyHouse, a 100-unit micro unit apartment building in Hollywood to a private investor for $14.75 million.

Vista acquired the former 1920s property located at 1963 N. Caheunga Boulevard in 2010 in a lender-facilitated sale. The property had been in the early stages of a major renovation that had stalled out during the recent recession and was in a general state of disrepair and neglect. The combination of the building’s location and its original design as a hotel, made it an ideal candidate for a micro-unit property, according to Vista President Jonathan Barach.

“There certainly is a market for these micro-units in high density cities like Manhattan, San Francisco and parts of LA like Hollywood and the Westside,” says Barach. “It allows renters access to well designed, well-located apartment buildings at a price point not otherwise unavailable. While not for everyone, the micro-unit concept appeals to a segment of renters, mostly young singles or couples that cannot afford the rent that larger units in the same area command.”

Vista began lease-up in Summer 2012 after an extensive renovation. WhitleyHouse’s 100 residential units include 70 micro units, averaging approximately 250 square feet, and 30 junior one-bedroom units, which average approximately 500 square feet. Each unit features new contemporary kitchens and baths, polished concrete floors, and high end finishes. There also is approximately 9,000 square-feet of ground-floor retail space leased to Pop Physique, Hopewell Workshop, MacPro LA and others.

At the time of sale, the building was 95 percent occupied.

“Vista created tremendous value in its ability to take a tired asset with great bones and modernize it for the needs of younger renters who are willing to give up space to be in the middle of the action,” adds Andrew Kirsh, co-founder of Sklar Kirsh LLP and attorney for Vista Investment Group. “Similar to our other clients who were able to make purchases during the recession, Vista is now seeing the benefits of those transactions by selling in today’s constrained multi-family market in Southern California.”

The off-market transaction was brokered by Darin Beebower, a partner with Madison Partners.

“Having recently sold several similar apartment buildings nearby, I was familiar with WhitleyHouse and believed that these micro-units were filling an underserved niche in the market,” says Beebower. “One of my clients was particularly attracted to these micro-units, and we submitted an aggressive, unsolicited offer that allowed Vista to exit the investment with great success.”