Kennedy Wilson Closes Two Financings in Japan

Kennedy Wilson closes a $115 million loan on part of its Japanese portfolio; CBRE sells 272 units in Springfield, Ohio; and Walker & Dunlop provides $27.4 million in financing for military apartments.

Beverly Hills, Calif.—KW Residential LLC, Kennedy Wilson’s unconsolidated Japanese venture, has refinanced part of its multifamily portfolio with a $115 million seven-year fixed-rate loan at 1.35 percent. The company also announced that KW Residential completed a $7 million refinancing on a different part of its portfolio for five years, also at a fixed rate of 1.35 percent. Kennedy Wilson has been active in Japanese real estate since 1992, and in 2002, one of the company’s former subsidiaries became one of the first U.S. real estate companies to go public in Japan.

“We are very pleased to be able to do our first seven year loan in Japan while at the same time locking in the lowest interest rate in the company’s history,” says Matt Windisch, executive vice president of Kennedy Wilson. “Our Japanese business has been a source of stable and growing cash flow for the company and this loan will help continue that trend.”

CBRE sells 272-units in Ohio

Springfield, Ohio—The Indianapolis-Cincinnati-Columbus multi-housing group of CBRE Group Inc. has negotiated the sale of Greenlawn Arbors, Northbrook Apartments and North Park Apartments. The 272-unit portfolio is located within a one-mile radius in Springfield, Ohio.

Greenlawn Arbors was built in 1992 and features 104 garden-style units. Northbrook Apartments was built in 1994 and consists of 70 garden-style units. North Park Apartments was constructed in 1990 and features 98 garden- and townhome-style units.

Walker & Dunlop provides $27.4M in financing for military apartments

Tacoma, Wash.—Walker & Dunlop Inc. announced it recently provided $27.4 million in financing for three multifamily residential properties located near Joint Base Lewis McChord in Washington state. The properties are comprised of 384 units with military concentrations ranging from approximately 20 percent to over 60 percent. These transactions demonstrate Walker & Dunlop’s expertise with multifamily properties with challenging characteristics nationwide.

Financing for Miramonte Apartments, located in Tacoma, Wash., was structured with a 10-year term with three-years interest only followed by a 30-year amortization period under Freddie Mac’s Capital Markets Execution (CME) program. The refinance was underwritten to a 74.67 percent loan-to-value with a 1.37x debt-service coverage ratio. Miramonte is located approximately three miles from the base and offers 120 units, approximately 20 percent of which are military-related and eight percent of the units receive a form of government assistance.

The Fannie Mae refinance for Arbor Pointe Apartments, located in Lakewood, Wash., was structured with a 10-year term with two-years interest only followed by a 30-year amortization period. The loan was underwritten to a 72.04 percent loan-to-value with a 1.36x debt-service coverage ratio. Arbor Pointe is a 188-unit apartment complex located approximately five miles from the base and has a military concentration of approximately 61 percent.

Walker & Dunlop structured the refinance for Crown Pointe Apartments with a 10-year term with three-years interest only followed by a 30-year amortization period under Freddie Mac’s CME program. The loan was underwritten to a 74.52 percent loan-to-value with a 1.41x debt-service coverage ratio. Crown Pointe Apartments is a 76-unit complex located in Lakewood, Wash. Approximately 22 percent of the tenancy is military-related and 25 percent of units receive a form of government assistance.

Walker & Dunlop Senior Vice President Allan Edelson led the Walker & Dunlop team on the transactions.