Kennedy Wilson Sells 286-Unit Community for $43M

Kenedy Wilson sells a 286-unit asset for $43 million; Carroll Organization acquires three off-market properties; and ARA brokers the sale of Michigan REO manufactured housing.

Mariposa Apartments

Anaheim, Calif.—Kennedy Wilson has sold Mariposa Apartments, a 286-unit multifamily asset in Anaheim, Calif., for $43 million. Greenwood & McKenzie represented the buyer, a private property owner/investor in the Orange County market. Hendricks & Partners represented the seller. Deutsche Bank provided 10-year fixed-rate financing for the transaction.

“Mariposa is well positioned for growth in the market,” says Robert Hart, president of Kennedy Wilson Multifamily Management Group. “Kennedy Wilson decided to sell the property based on the buyer’s highly attractive offer, which still enables him to take advantage of future rent growth.”

Mariposa Apartments is situated on 11.5 acres and has amenities including swimming pools, fitness centers and recreation areas.

Carroll Organization picks up three off-market properties

Atlanta—Atlanta-based Carroll Organization, in a partnership with Lexerd Capital, has acquired three “off-market” properties. Carroll Management firm will take over the day-to-day management duties of the three assets: Loudon Gardens in Loudon, Tenn.; Tullahoma Village in Tullahoma, Tenn.; and Thomaston Gardens in Thomaston, Ga.

“These properties were purchased off-market at what I would describe as a significant discount to replacement costs, with great in-place cash-flow,” says Patrick Carroll, CEO of Carroll Organization. “These additions–both to our ownership and management portfolios–demonstrate the ongoing growth of our firm, as well as the strong alliances of which we are pleased to be a part.”

Lexerd Capital Management LLC is a private equity firm that invests in opportunistic middle-market multifamily real estate. Carroll Organization is an Atlanta-based enterprise focused on the ownership and operation of multifamily real estate.

ARA brokers sale of Michigan REO manufactured housing portfolio

Grand Rapids, Mich.–ARA participated in the sale of three REO assets on behalf of Berkadia Commercial Mortgage LLC. Included in the transaction were Country Meadows, Maple Knoll and Rabbit River. The communities, located in Western Michigan, were foreclosed upon prior to going to market, and were operated by an experienced third-party manager at the time of sale. ARA National Manufactured Housing Co-Directors Todd Fletcher and Andrew Shih represented the seller in the transaction.

The three assets were offered individually or as part of a portfolio. Due to the proximity of the communities, they were purchased together as a portfolio by a regional owner/operator out of California. The three communities, all located between Grand Rapids, Kalamazoo and Lansing, Mich., total 217 sites spread over 83.38 acres.

“With the properties so close to each other, this was a great opportunity for an operator to gain a strong foothold in the market,” says Fletcher, “and many investors feel that the Michigan market, especially the Western side, has already hit bottom, and that this is the time to purchase assets at attractive valuations.”

At the time of the sale, each of the assets were family communities with mostly affordable single-wide homes, and all three operated on private well water while two had private sewage. Prior to the foreclosure of the properties, the occupancy in the communities had slipped, presenting the new buyer with tremendous vacancy upside potential.

“Fortunately, the special servicer controlling the disposition hired an experienced third-party manufactured housing operator to act as property manager until the sale,” says Shih, “They did a terrific job stabilizing the properties and understanding their immediate issues.”