SAN PABLO, CA-Kennedy Wilson and its partners have acquired Bella Vista at Hilltop, a 1,008-unit multifamily community here, for $140.5 million. The addition of Bella Vista is also the largest single multifamily asset acquisition in Kennedy Wilson’s history, according to a prepared company statement.
The purchase, from seller GMH Capital Partners, increases the company’s multifamily portfolio to 12,906 units in the western US and Japan and assets under management to $7.4 billion. “Bella Vista is an institutional quality asset in one of our largest target markets,” says Robert Hart, president of KW multifamily management group. “This deal is a prime example of Kennedy Wilson’s ability to source high quality opportunities off market.”
Terms of the transaction included assumption of an existing seven-year Fannie Mae loan of $97.5 million, fixed until 2017 at 5.25%. Jordan Moss, leader of Jones Lang LaSalle’s Bay Area multifamily practice represented Kennedy Wilson.
Hart tells GlobeSt.com that “We liked the scale of the Bella Vista asset and the East Bay location overlooking San Pablo Bay. The economy of scale of management for Kennedy Wilson was a big factor as well,” he says.
He adds that “We now control over 3,500 units (including Bella Vista) in the East Bay markets and can drive rents and create management synergies among our asset base. The property fits well into our portfolio and has an excellent amenity package, unit mix and location near major transportation hubs.”
Bella Vista at Hilltop consists of 42 three-story apartment buildings with unit sizes averaging 887 square feet. The community, recently renovated, features an expansive amenity package including four outdoor swimming pools, one indoor swimming pool, four whirlpools, one sauna, four lighted tennis courts, a professional business center, a fully-equipped exercise center, laundry rooms, a large playground area, meeting rooms and access gates.
JLL’s Moss says that “The acquisition of Bella Vista provides Kennedy Wilson an opportunity to add more than one thousand units to their growing Bay Area apartment portfolio in one fell swoop. Bella Vista was purchased at an attractive basis and at a substantial discount to replacement costs.”
In other Kennedy Wilson news, as GlobeSt.com previously reported, the company has taken over the locally based Bank of Ireland Real Estate Investment Management business, which manages the bank’s commercial real estate holdings. The deal, KW’s first foray into Europe, closely follows Jones Lang LaSalle’s takeover of London-based property management firm King Sturge in a deal that closed Tuesday.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
