TODAY’S DEALS: Kennedy Wilson Acquires 118 Units South of Seattle
Kennedy Wilson completes a $20.8 million acquisition in Turnwater, Wash.; Hunt Mortgage Group refinances an affordable seniors asset in Pennsylvania; and NorthMarq Capital arranges a seven-year, $22.8 million acquisition loan.
Turnwater, Wash.—Kennedy Wilson has expanded its presence in the Pacific Northwest with the acquisition of Tabula Rasa. The 118-unit apartment community is located in Turnwater, Wash. The $20.8 million purchase brings Kennedy Wilson’s global multifamily portfolio to 19,531 units, with 4,936 units in the Pacific Northwest. Kennedy Wilson invested $8.0 million of equity in the transaction (inclusive of closing costs) and secured a seven-year $13.5 million loan through Freddie Mac.
“Given the positive fundamentals, we are excited about the prospects for the Tumwater/Olympia market,” says Kurt Zech, president of Kennedy Wilson Multifamily. “The South Puget Sound continues to remain one of KW’s top investment targets and we expect to continue to seek opportunities within this region.”
The 2008-built asset is located in Thurston County and features condo quality townhome and flat units. It was designed as a rustic Northwest-style lodge club house and features two-car garages.
“Currently, there are almost no new multifamily developments in this region,” says Shem Streeter, managing director at Kennedy Wilson. “The upward trending rent growth, coupled with an attractive location in close proximity to the key employment centers, make Tabula Rasa an exciting investment opportunity.”
Hunt Mortgage Group refinances a Pennsylvania asset
Monroeville, Pa.—Hunt Mortgage Capital has provided a $2.7 million Fannie Mae adjustable rate loan facility to refinance East Boros Apartments, an affordable multifamily community located in Monroeville, Pa. The community is an affordable Section 8 subsidized mid-rise apartment building with 101 apartment units. The borrower purchased the 1978-built property in October 2012.
“The borrower has been acquiring, rehabilitating and managing multifamily real estate since 2000, and the majority of those acquisitions have involved properties with project-based Section 8 housing properties,” explains Jim Gillespie, managing director at Hunt Mortgage Group. “A core focus of our affordable housing platform is on the financing and preservation of existing affordable housing. We believe the preservation market will continue to grow over the next five years and this is exactly the type of transaction we want to be pursuing.
All of the apartments at East Boros are one-bedroom units restricted to tenants who are age 62 or older. The property is located next to the University of Pittsburgh Medical Center and within a mile of shopping and entertainment. Property amenities include a central laundry center, community room, computer room, fitness room, outdoor patio with picnic and shuffleboard areas, on-site maintenance and on-site management.
NorthMarq arranges seven–year, $22.8M acquisition loan
Los Angeles—Michael Elmore, EVP/managing director of NorthMarq Capital’s Los Angeles office and James DuMars, SVP/managing director of NorthMarq Capital’s Phoenix office, secured $22.8 million in acquisition financing for Ocotillo Springs, a Class A 272-unit multifamily property located at 825 W. Queen Creek Road in Chandler, Ariz.
The transaction was structured with a seven-year term with three-years interest-only followed by a 30-year amortization schedule. NorthMarq arranged financing for the borrower through its seller/servicer relationship with Freddie Mac.