Kennedy Wilson Expands with Condo-Quality Apartment Acquisition
- May 01, 2015
Santa Maria, Calif.—Kennedy Wilson announced today that it has acquired Montiavo at Bradley Square, a 208-unit apartment asset located in Santa Maria, Calif., for $47 million. The investor put down $10.4 million in equity and secured a $37.7 million, 10-year mortgage fixed at 3.77 percent, interest only for five years via Freddie Mac.
The property was built in 2004 as condos. All units are split-level townhome style. Common areas include a fitness center, pool with sundeck, business center and a clubhouse/lounge.
“This value-add deal offers a very attractive spread between the in-place cap rate and the fixed cost of financing, resulting in cash-on-cash returns superior to those typically achievable on an asset of this vintage and quality,” said Kurt Zech, president of Kennedy Wilson Multifamily Investments.
Greystar nabs Quincy apartments
Quincy, Mass.—An affiliate of Greystar has acquired a 200-unit apartment community in Quincy, Mass., from an affiliate of Intercontinental Real Estate Corporation in a CBRE/NE-brokered sale. The 2006-built Ten Faxon is a 100-percent market-rate community located directly across the street from the Quincy Center MBTA. Units average 942 square feet. Amenities include a community room, fitness center and interior courtyard.
CBRE/NE multi-housing experts Simon Butler, vice chairman/partner, and Biria St. John, vice chairman/partner, exclusively represented the seller.
National real estate investor purchases property for $30M in online auction
Orlando, Fla.—Northland Grandeville LLC, doing business as Northland Investment Corp., has purchased apartment community Grandeville on Saxon in Orange City, Fla., for $30.34 million on Auction.com. The Class A, 316-unit property, located at 741 Saxon Boulevard, includes 21 multifamily buildings with 352,616 square feet of rentable space. The buyer, Northland Investment, is a real estate investment company.
George Pjevach of Colliers International Central Florida and John Stone of Colliers International Tampa Bay represented the seller, WBCMT 2006-C24 Saxon Boulevard LLC, for which LNR is the special servicer. John Mitchell, Senior Vice President with LNR, oversaw the liquidation process.
Buyer interest was high for Grandeville on Saxon, as evidenced by a great deal of activity on the auction website—more than 580 prospective bidders reviewed the sales materials online.
Over the past six months, Northland Investment has acquired six properties in its key markets of Florida, Texas and New England. Grandeville on Saxon is Northland Investment’s 21st property in Florida, bringing its total nationwide portfolio to more than 21,000 apartment homes.
At the time of sale, the property was 96 percent occupied.