BEVERLY HILLS, CA – Global real estate investment company Kennedy Wilson announced the $422 million sale of a six-property multifamily portfolio totaling 2,199 units. The asset sales generated cash proceeds of $223 million for Kennedy Wilson, its commingled funds and equity partners, including net proceeds to Kennedy Wilson of approximately $104 million. The Company had a 41.3% average ownership in the six properties.

“This portfolio sale enables us to recycle capital into other strategic investment opportunities,” said William J. McMorrow, Chairman and CEO of Kennedy Wilson. “These six properties represent the successful roll-out of our value-add asset management initiatives, and we are pleased to see those efforts make compelling value for our investors.”

The six garden-style apartment communities were originally built between 1989 and 1999 and have undergone improvement plans including exterior renovations and unit upgrades under Kennedy Wilson’s ownership.

Located across four states, the properties in the portfolio include Slate Creek in Roseville, CA with 612 units; Xander 3900 in the Las Vegas Valley with 480 units; Huge Trout Lodge in the City of Liberty Lake, WA with 297 units; Heatherbrae Commons in Milwaukie, OR with 174 units; Montair at Somerset Hill in Tumwater, WA with 396 units; and StonePointe in University Place, WA with 240 units.

For the year, Kennedy Wilson has completed $202 million in multifamily acquisitions totaling 956 units in the Western U.S. and Ireland. The Company also has 2,530 multifamily units under development or in design.

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Boynton Beach, FL – American Landmark, one of the fastest-growing multifamily owner-operators in the country, has bought High Ridge Landing, a new 184-unit multifamily property in Boynton Beach, Florida.

Along with Electra America, its debt and equity partner, American Landmark plans to close $1.5 billion in multifamily deals in 2018 throughout the Southeast. This is their third multifamily acquisition so far this year. In South Florida, they also own and operate Beach Walk at Sheridan in Dania Beach and Lago Paradiso in Miami.  

The financing for the deal was arranged by Berkadia’s Mitch Sinberg, Matt Robbins, Bob Falese, Matt Cullison, and Wes Moczul.

“We privately negotiated a very attractive price point for this well-located, Class A asset,” said Christine DeFilippis, Chief Investment Officer at American Landmark. “We have fantastic confidence in central Palm Beach County’s growing job base, increased tourism and exceptional quality of life, and are thrilled to be a part of Boynton’s revitalization.”

The firm will spend $500,000 on additional upgrades, including improvements to the upscale clubhouse, improving the pool area with a grill space and new furniture, adding a Wi-Fi café, upgrades to the fitness center and landscaping.

High Ridge Landing, built in 2017, is located at 3609 High Ridge Way in Boynton Beach. Units range from one to three bedrooms, featuring stainless steel appliances and granite countertops, walk-in closets, private balconies, detached garages, Wi-Fi access and various floor plans. Amenities available to residents consist of a yoga and spin studio, pool, auto charging stations, fitness center and business center.

Numerous dining, shopping and entertainment options are located close to the property. The property is convenient to transit routes such as Interstate 95 and the Tri-Rail.

American Landmark is a national multifamily owner-operator specializing in multifamily acquisition, repositioning and property management.  It owns and operates properties in Georgia, Florida, North Carolina, South Carolina and Texas. 

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MARLTON, NJ – The Michaels Organization, the nation’s largest, privately held owner of affordable housing, announced that it has bought 41 apartment communities from affordable housing developer Vitus. The deal increases Michaels’ affordable housing portfolio by more than 1,500 units and expands its nationwide footprint from 35 states to 36. The acquisition, which included properties in Arizona, California and Washington state, marks the first time Michaels will own and manage affordable communities in Washington state.

“We have tremendous respect for Vitus, who like us, are developers of innovative, sustainable, high-quality affordable apartments,” said John J. O’Donnell, president of The Michaels Organization. “These communities align well with our existing portfolio and with our strategic plot for growth.”

The majority of the units receive subsidy payments provided by either the U.S. Department of Housing or the U.S. Department of Agriculture, and all have been recapitalized with Low Income Housing Tax Credits.

“We appreciate that The Michaels Organization goes beyond ‘sticks and bricks’ to focus on making opportunities for residents and empowering communities,” said Stephen R. Whyte, Vitus’ founder and managing director. “We are pleased that these communities will be in excellent hands for generations to come.”

Whyte also said Michaels was uniquely qualified as the most suitable buyer for the portfolio, possessing both the ability to navigate the complexities of a myriad of financial, partnership and regulatory approvals, along with the capital relationships to bring to bear, ensuring successful execution of such a large, complex transaction.

Vitus will use the proceeds from the transaction to make and preserve additional affordable housing in markets across the country.

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