Kennedy Wilson Sells Interest in Bay Village Apartments

VALLEJO, CA—Real estate investment firm Kennedy Wilson reports it has sold its interest in the 260-unit Bay Village Apartments complex here.

The Beverly Hills, CA-based firm reports it had a 50% interest in the property that was acquired with a joint venture partner in 2010. In the past eight years, Kennedy Wilson increased net operating income at Bay Village by 121%, resulting in a pre-tax gain on sale of $20 million to Kennedy Wilson.

No other financial details of the transaction were disclosed.

“This sale enables us to recycle capital into other strategic investment opportunities that we plan to close this month,” says Kurt Zech, president of Kennedy Wilson’s multifamily division. “We are proud of the value-add program we implemented at this well-located property that has benefited from its proximity to job centers and schools, as well as the continued strong demand for attainable rental housing in the North Bay.”

Bay Village Apartments is located at 1107 Porter St. and is situated on a waterfront bluff two miles from downtown Vallejo. The complex of one- and two-bedroom apartment homes across 41 two-story buildings on 18.5 acres was originally built in 1988 and has undergone significant improvements, including exterior renovations and unit upgrades under Kennedy Wilson’s ownership. The clubhouse was also completely remodeled, including an expanded fitness center for residents.

Kennedy Wilson maintains a large presence in Northern California with an ownership interest in more than 800,000 commercial square feet and approximately 2,900 multifamily units.

Globally, Kennedy Wilson holds an ownership interest in more than 27,000 multifamily units, including approximately 3,400 multifamily units under development or in design.