Hold Period Allows for Value Add and Growth

Kennedy Wilson grew the income by approximately 20% prior to sale.

EL CERRITO, CA—Implementing a value-add asset management program adds up to increased net operating income for Kennedy Wilson and its equity partners. The team recently completed the sale of a 159-unit multifamily property, The Village At Town Center , for $55 million. The apartment community was acquired by Kennedy Wilson and its partners in 2013, after which Kennedy Wilson took full execution of its business plan and grew the income by approximately 20% prior to sale. Kurt Zech , president of multifamily investments at Kennedy Wilson, tells Globest.com: “The Village At Town Center is a premier multifamily asset in El Cerrito. Kennedy Wilson executed its business plan at the property by improving operations and implementing a unit interior value-add program, significantly increasing property rents and cash flow. During the company’s hold period, the area around the property matured beautifully and is now a hot area for East Bay urban living with great access to major Bay Area job centers. Overall, we have been selectively selling multifamily assets for which we have achieved our business plan and created significant value for our investors.” Since September 2015, Kennedy Wilson and its partners have sold six multifamily properties totaling 1,997 units located in the western half of the country for gross sales proceeds of $479 million. The company had a 22% weighted average ownership in these joint venture investments and the sales were completed at an average cap rate of 4.9%. The net proceeds (including promoted interests) to Kennedy Wilson were $57 million, which equates to an approximate $35 million cash profit on these investments. Kennedy Wilson’s global multifamily portfolio has grown by approximately 3,500 units in the past 12 months and now stands at more than 24,000 units. Kennedy Wilson has an approximate 48% weighted average ownership interest in this portfolio. For the full year of 2015, Kennedy Wilson and its equity partners (including KWE) completed more than $3 billion of acquisitions and more than $2 billion of dispositions. Of The Village At Town Center, Zech concludes: “This was an opportune time to selectively dispose of a handful of investments in which the company had smaller ownership interests. With that said, we continue to focus on growing the income in our core portfolio and strategically adding units to our overall multifamily platform.”