Kennedy Wilson sells Alameda, Calif., apartment complex for $231m
Kennedy Wilson has sold the 615-unit Summer House apartment complex in Alameda, Calif., to an undisclosed buyer for $231 million, representing the largest multifamily transaction in the San Francisco Bay Area in 2017 and one of the largest single asset real estate transactions recorded in the East Bay.
Additionally, the company completed the sale of Gardner House, a 75,600 square-foot office building in Dublin, Ireland, for $73 million.
Kennedy Wilson will reinvest the proceeds from Summer House and Gardner House into four separate multifamily assets with a total of 996 units in the Pacific Northwest through 1031 exchanges and will also pay down unsecured debt under Kennedy Wilson’s revolving credit facility. The newly acquired multifamily properties, which are on average 40 years newer than Summer House, include Latitude, a 210-unit apartment community built in 2008 in Happy Valley, Ore., and Heatherwood, a 264-unit apartment community in Gresham, Ore. The remaining two multifamily acquisitions include 522 units in the greater Seattle and Portland markets, and are expected to close before the end of 2017.
The disposition of Summer House is the second significant apartment sale for KW’s multifamily group over the past several months. In July 2017, the company sold Rock Creek Landing in Kent, Washington for $109 million and used the proceeds to fund the acquisition of 90 East, a 573,000 square-foot office campus in Issaquah, Washington. Within four months of taking ownership of 90 East, the Kennedy Wilson team negotiated a lease extension on 177,000 square feet with Costco. The lease was extended an additional seven years beyond the existing term, securing long-term stability for this well-located office asset.