The international real estate investment and services company,
Kennedy-Wilson Holdings, Inc.
), along with its partners, acquired a Calif.-based multifamily
community - Montelena Apartments - from a private investment
group. This acquisition is in line with the company's ongoing
strategic move to boost its presence in Calif.
The total purchase price of the property was $34 million.
Around $11 million of equity investment was made in the deal. In
addition, $27 million of fixed rate funding was placed with
Federal Home Loan Mortgage Corporation
). This was done through CBRE Capital Markets of
CBRE Group Inc.
) for 10 years at 3.5%.
Montelena Apartments, which comprises 188 units, is situated
in Hayward in North Calif. Ideally placed adjacent to the South
Hayward BART station, the asset is expediently connected to all
major employment centers of the East Bay, South Bay, Silicon
Valley and San Francisco. Kennedy-Wilson along with its partners
intends to invest around $4 million for quality upgrade of
In our view, Kennedy-Wilson's ongoing acquisition activity
adds quality to its portfolio, which is likely to augur well for
its earnings growth going forward. Moreover, the acquired asset
is expected to complement Kennedy-Wilson's recently acquired
544-unit apartment community - The Bridge - located a few miles
away in the Hayward area.
Kennedy Wilson offers a wide array of real estate services
including auction, conventional sales, property services, and
research and investment management with 24 offices in the U.S.,
U.K, Ireland and Japan. Since the beginning of 2010, Kennedy
Wilson, along with its institutional partners, has acquired
approximately $9 billion worth of real estate and real estate
Kennedy-Wilson currently carries a Zacks Rank #3 (Hold). Among
the companies performing better than Kennedy-Wilson, one is
E-House (China) Holdings Limited
), carrying a Zacks Rank #1 (Strong Buy).
CBRE GROUP INC (CBG): Free Stock Analysis
E-HOUSE CHINA (EJ): Free Stock Analysis
FREDDIE MAC (FMCC): Free Stock Analysis
KENNEDY-WILSON (KW): Free Stock Analysis
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