San Jose, Calif. & Portland, Ore.—Kennedy Wilson has sold two multifamily assets for a total of $154 million. The company realized net proceeds of $64 million, which will be distributed to the company and equity holders. The two properties include the 213-unit 360 Residences in San Jose, Calif., and the 440-unit Arbor Creek Apartment Homes in Beaverton, Ore. The properties were traded to separate buyers at an average cap rate of 4.5 percent.
Kennedy Wilson took title of 360 Residences, a luxury tower, in March 2011. The company converted the vacant and unfinished property into apartments, and then leased and stabilized the asset, which was at 97 percent occupancy at the time of sale.
“The goal was to complete and then stabilize the asset, and we took 360 from a note to an income producing apartment building in ten months,” says Robert Hart, president of Kennedy Wilson Multifamily Management Group.
According to Institutional Property Advisors, the multifamily division of Marcus & Millichap that arranged the sale, the 360 Residences transaction was the largest single asset multifamily sale to close in the Bay Area year-to-date at $118 million.
The net operating income at Arbor Creek had improved by 22 percent since 2010. Kennedy Wilson had recently completed a series of upgrades, which renovated the leasing center, clubhouse and fitness center.
(Updated: 4/18/12 @ 9:44 a.m.)
Broad Street and Crow Holdings purchase $85M in NYC
New York—Broad Street Development and Crow Holdings have acquired a 208-unit residential portfolio in Manhattan’s Gramercy Park for $85 million. The portfolio, which was marketed by Holliday Fenoglio Fowler, includes mid-rise properties located at 210 East 22nd Street and 220 East 22nd Street. The two properties were sold by GID Investment Advisors.
“We are thrilled to acquire such a strong rental portfolio in one of Manhattan’s most desirable neighborhoods, as we continue to expand our residential platform in New York City,” says Raymond Chalmé, a principal at Broad Street Development. “We see a great opportunity here to add value by enhancing the product in this very strong rental market. There is tremendous demand for residences in the Gramercy Park neighborhood, and we are going to meet the market with outstanding product.”
Jakubiec brokers sale of property for $3M
Chicago Ridge, Ill.—Michael P. Jakubiec, CCIM president and managing broker of Michael P. Jakubiec Investment Real Estate Inc. announced the sale of the 48 unit Ridge Terrace Apartments in Chicago Ridge, Ill. The list price was $3 million.
Michael P. Jakubiec, CCIM was the listing and the selling broker. The property was in great condition with no deferred maintenance, according to the company. Occupancy was nearly 100 percent. Interest in the property was very strong, attracting both local and out of state buyers. Michael P. Jakubiec, CCIM was able to close the transaction in a listing period beginning in August, 2011.