BEVERLY HILLS–Kennedy Wilson has sold its 41.5% stake in a six-asset multifamily portfolio for $422 million. The portfolio, which totals 2,199 units, generated cash proceeds of $223 million for the company, its commingled funds and equity partners. Kennedy Wilson itself took home net proceeds of approximately $104 million.
CEO William J. McMorrow said the company would recycle capital into other strategic investments.
The six garden-style apartment communities were originally built between 1989 and 1999. They are located in four states: Slate Creek in Roseville, CA; Xander 3900 in the Las Vegas Valley; Big Trout Lodge in Liberty Lake, WA; Heatherbrae Commons in Milwaukie, OR; Montair at Somerset Hill in Tumwater, WA; and StonePointe in University Place, WA.
The company has been investing in a wide array of activities. Earlier this month it announced it had entered into a joint venture with AXA Investment Managers – Real Assets to target the multifamily space in Ireland. In March it announced that its Board of Directors approved the repurchase of up to $250 million of the company's common stock. Kennedy Wilson said it intended to fund the 18-month share repurchase program mainly from proceeds from future sales of non-core assets.
So far this year, the company has completed $202 million in multifamily acquisitions totaling 956 units in the Western US and Ireland. Last year it sold $1.7 billion in assets and this year it intends to sell between $1 billion and $1.2 billion in properties. However this year's sales are expected to generate more cash because of the company's higher ownership interests, McMorrow told listeners during the recent earnings call.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
