(Read more on the debt and equity markets and the multifamily market .)
BEVERLY HILLS, CA-Kennedy Wilson has refinanced a portion of its portfolio of multifamily properties in Japan with a $115-million loan from Morgan Stanley. William J. McMorrow, chairman of Kennedy Wilson, tells GlobeSt.com that the new securitized loan provides permanent financing to replace bridge financing on the properties, lengthens the term of the loan and converts it to a fixed rate.
One of the most noteworthy aspects of the deal was that Kennedy Wilson was able to secure the favorable financing in light of the changing conditions and uncertainties that developed in the capital markets over the summer, McMorrow points out. “In spite of the situation in the capital markets, we were able to get all of these things done, which is a testament to the relationships we've developed with lenders over the years,” the Kennedy Wilson chairman observes.
The new loan covers 17 of the Beverly Hills-based real estate services and investment firm's multifamily properties in Japan, where it owns approximately 2,000 units in Tokyo and other major cities. McMorrow tells GlobeSt.com that the company expects its Japanese multifamily portfolio to grow to about 2,500 units in 50 properties after Kennedy Wilson closes on deals that are now pending. Kennedy Wilson and its partner, Wachovia, have acquired the 2,000-unit portfolio over the last 15 months for a total investment of more than $500 million.
The $115-million loan follows an earlier financing in the US in which Kennedy Wilson Multifamily secured debt financing from Wachovia for the acquisition of the Mill at Mill Creek, a 516-unit apartment complex in Mill Creek, WA, a project that is a joint venture with Rreef. Additionally, in a separate transaction, KWMF and its equity partner AIG Global Real Estate acquired College Park a 331-unit apartment property in San Jose that is to be renamed the Grove.
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