BEVERLY HILLS, CA – Global real estate investment company Kennedy Wilson announced that the company sold Rock Creek Landing, a wholly-owned 576-unit multifamily property in Kent, Washington, for $109 million. The cash proceeds of $73 million from this transaction were used to fund the previously announced acquisition of 90 East, an office campus in greater Bellevue.

“This sale demonstrates our ability to leverage our vertically integrated investment platform to identify undermanaged investments where we can make value through the execution of our asset management program,” said Shem Streeter, Managing Director of Kennedy Wilson Multifamily Investments. “With an abundance of older multifamily housing stock in our target markets, we look to continue replicating our value-add asset management strategy on new investment opportunities.”

Rock Creek Landing was bought in 2014 for $58 million as part of a three-property 1,212-unit multifamily portfolio located across the southern submarkets of Seattle and bought for $127 million. After acquisition, Kennedy Wilson invested an additional $6 million in completing its value-add asset management program, including upgrades to the leasing center, interior renovations, common area improvements, and other property enhancements.

During its ownership period, the net operating income of the property grew by 56% to $5.3 million. Through the disposition of Rock Creek Landing and the acquisition of 90 East, the company expects to add an incremental $7 million of annual recurring net operating income.

Kennedy Wilson maintains a large presence in the State of Washington with an ownership interest in 1.4 million commercial sq. ft. and over 9,700 multifamily units.

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CORAL GABLES, FL – Berkshire Group announced the buy of Aviva Coral Gables. The recently built 276-unit luxury apartment community will be renamed Berkshire Coral Gables. The property is located in the Miami market in Coral Gables, Florida, near the Shops at Merrick Park.

“Aviva Coral Gables represents Berkshire’s first acquisition in the Miami market and our continued commitment to Southeast Florida, following the buy of Manor Lauderdale by the Sea last year,” noted Greg Collins, Vice President, Multifamily Acquisitions, Berkshire Group. “The property checks all the boxes for us. The Coral Gables submarket is internationally recognized and has some of the strongest demographics in the Miami metropolitan area. It is a right transit-oriented development located within walking distance to destination retail at the Shops at Merrick Park and the Douglas Road Metrorail Station, providing residents convenient access to downtown Miami and the Miami International Airport.”

Berkshire Coral Gables features a heated saltwater swimming pool and soaking spa, outdoor courtyard and kitchen with Viking gas grills, cyber café, dog spa/dog walk, and a sports lounge. Interior apartment features include condominium quality finishes including custom Italian soft-close cabinetry, quartz and granite countertops, stainless steel appliances, USB port outlets, full size washers and dryers, and spacious walk-in closets.

Berkshire Group is a real estate investment management company primarily known for its multifamily investment and operational experience. In addition to deploying capital through equity, debt and development in the multifamily arena, Berkshire invests in opportunistic ventures in other real estate sectors through its Venture Investments group.

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PLANO, TX – Monogram Residential Trust, an owner, operator and developer of luxury apartment communities with a significant presence in select coastal markets, announced that it has entered into a definitive merger agreement to be bought by a newly formed perpetual life fund, Greystar Growth and Income Fund, LP, led by Greystar Real Estate Partners and its initial founding capital partners, affiliates of APG Asset Management N.V., GIC, and Ivanhoé Cambridge, in a transaction valued at approximately $3.0 billion, including debt to be assumed or refinanced. 

Under the terms of the merger agreement, which was unanimously approved by Monogram’s Board of Directors, Monogram’s stockholders will receive $12.00 per share in cash.  This represents a premium of approximately 22% to Monogram’s unaffected closing stock price on July 3, 2017, the last trading day prior to the public announcement of the transaction.

The $3.0 billion aggregate transaction value includes Monogram’s share of its two institutional co-investment joint ventures with PGGM and NPS.  The PGGM joint venture will be restructured, and the joint venture interests held by NPS will be bought by Greystar pursuant to a separate assignable buy and sale agreement for approximately $0.5 billion, subject to certain adjustments at closing, including payment of the NPS joint venture’s share of debt to be assumed or refinanced in connection with the transaction.

“We are pleased to have reached this agreement, which maximizes value at a substantial premium to our existing share price,” said Alan Patton, Monogram’s Chairman of the Board of Directors. “We are confident that today’s announcement represents the best path forward for all of Monogram’s stockholders.”

“This landmark is the result of Monogram’s success at executing and delivering on strong operations, innovative development programs and investment strategies in conjunction with skillful market timing,” said Mark Alfieri, Monogram’s Chief Executive Officer, President and Chief Operating Officer.  “The interest we received from this sophisticated group of investors demonstrates that our targeted focus on building our portfolio with high quality Class A assets in select core markets has been recognized and our stockholders and joint venture partners are rewarded with this successful outcome.”

“We are excited to add Monogram’s high quality assets in some of the best markets in the country as the seed portfolio for Greystar Growth and Income Fund, LP, our flagship core-plus perpetual life vehicle,” said Bob Faith, the Founder, Chairman and Chief Executive Officer of Greystar.  “The collective strength and experience of our high-quality investment partners are second to none, and we look forward to completing this transaction and further expanding Greystar’s U.S. multifamily platform.”

The transaction, which is expected to close in the second half of 2017, is subject to approval by Monogram’s stockholders and other customary closing conditions.  The transaction is not contingent on receipt of financing by Greystar.  JPMorgan Chase Bank, N.A. has provided a commitment letter to Greystar Growth and Income Fund for $2.0 billion in debt financing for the transaction upon the terms and conditions set forth in such letter.  Following payment of the previously announced second quarter dividend on July 7, Monogram will not pay any dividends through the close of the transaction except as required to maintain its REIT status and any such dividend will be deducted from the buy price.

Morgan Stanley & Co. LLC is serving as exclusive financial advisor and Goodwin Procter LLP is serving as legal advisor to Monogram.  J.P. Morgan Securities LLC is serving as exclusive financial advisor and Jones Day is serving as legal advisor to Greystar.  

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