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FEDERAL WAY, WA-The multifamily division of Beverly Hills, CA-based Kennedy Wilson and its equity partner AIG Global Real Estate have acquired Stonehaven at West Campus, a 518-unit, 493,854-sf apartment community here, for $58 million. The seller was publicly held United Dominion Realty Trust, which acquired the property in the late 1990s.
Completed in 1991, Stonehaven at West Campus consists of 48 wood-frame buildings on 30 acres. Amenities within the gated community include a full-size basketball gymnasium, fitness center, aerobics studio, tanning facility, children's center, racquetball court, movie theater, business center and three heated swimming pools. Apartment units range from 698 sf to 1,200 sf.
KW Multifamily's senior managing director Eddie Ring says the value-add opportunity with the asset is that "the units have not been upgraded and the common areas are showing their age." KW plans to invest an additional $5 million in the property in order to renovate the units' kitchens and bathrooms, improve their lighting, replace their carpeting and generally upgrade common amenities.
David Young of Hendricks & Partners brokered the sale. GE Capital provided the financing for the transaction.
KW Multifamily currently manages approximately 6,000 apartments, mostly in California. Stonehaven is KW Multifamily's second acquisition in the Northwest this year. Earlier this year, it paid $32.8 million for the 440-unit Woodcreek apartment complex in Beaverton, OR.
"It's our intention to broaden our investment horizon by focusing on quality, under-valued multifamily assets in areas outside of California," says KW Multifamily president Bob Hart. "The Pacific Northwest, specifically the Seattle-Tacoma area, will be a major focus for our company as we move forward."
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