LOS ANGELES, CA – Champion Real Estate Company announced the acquisition of a 30-unit multifamily property in the heart of Koreatown. The property, named The Bard Apartments, was bought by an affiliate of Champion, and is located at 756 S. Normandie Avenue.

The property is currently nearly fully occupied and subject to the City of Los Angeles Rent Stabilization Ordinance (“RSO”). It consists of 23 studios and 7 one-bedroom units.

“The Bard Apartments is a fantastic value-add investment in a core Los Angeles market,” states Parker Champion, Senior Vice President. “The investment allows for immediate cash flow and based on our prior success with RSO properties, we believe that we can make strong value-add returns.”

Prior to acquisition, several units had been renovated as part of a modest value-add improvement program. In addition to continuing to improve the units as they become available, Champion intends to expand on this effort by improving the curb appeal, common areas, and property amenities.

“Koreatown is quickly becoming a core market for investors and developers, especially for multifamily investments that can provide an immediate return,” says Parker. “Champion intends to continue to buy multifamily properties in Koreatown as part of our investment strategy.”

Champion and its affiliates currently manage similar RSO properties in the Koreatown and Hollywood submarkets.

Champion Real Estate Company was founded in 1987 by nationally recognized investor, developer and CEO, Bob Champion. Based in Los Angeles, Champion’s investment strategy is to buy infill properties in “A” locations within markets that are core, core adjacent, or gentrifying to core, and implement value accretive improvements to achieve above-market returns.

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IRVINE, CA – CoreLogic, a leading global property information, analytics and data-enabled solutions provider, released its CoreLogic Home Price Index (HPI) and HPI Forecast for October 2016 which shows home prices are up both year over year and month over month.

Home prices nationwide, including distressed sales, increased year over year by 6.7 percent in October 2016 compared with October 2015 and increased month over month by 1.1 percent in October 2016 compared with September 2016, according to the CoreLogic HPI.

The CoreLogic HPI Forecast indicates that home prices will increase by 4.6 percent on a year-over-year basis from October 2016 to October 2017, and on a month-over-month basis home prices are expected to increase by 0.2 percent from October 2016 to November 2016. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“While national home prices increased 6.7 percent, only nine states had home price growth at the same rate of growth or higher than the national average because the largest states, such as Texas, Florida and California, are experiencing high rates of home price appreciation,” said Dr. Frank Nothaft, chief economist for CoreLogic.

“Home prices are continuing to soar across much of the U.S. led by major metro areas such as Boston, Los Angeles, Miami and Denver.  Prices are being fueled by a potent cocktail of high demand, low inventories and historically low interest rates,” said Anand Nallathambi, president and CEO of CoreLogic. “Looking forward to next year, nationwide home prices are expected to climb another 5 percent in many parts of the country to levels approaching the pre-recession peak.”

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BEVERLY HILLS, CA – Global real estate investment company Kennedy Wilson announced a series of separate multifamily transactions totaling $363 million including: the acquisition of Alara Hedges Creek, a 408 unit apartment community built in 1998 in a suburb of Portland, Oregon for $93 million; the disposition of The Grove, a 331 unit apartment community built in 1964 in San Jose, California for $96 million; and a $175 million refinance of Bella Vista at Hilltop, a 1,008 unit apartment community built in 1988 located in the San Francisco Bay Area.

“These transactions allowed us to harvest gains, improve the quality of our portfolio and lock in attractive long term financing,” said Kurt Zech, President of Kennedy Wilson Multifamily Investments. “We were able to generate excess capital through these transactions while growing the cash flow of our portfolio.”

On Thursday, Kennedy Wilson bought 100% of Alara Hedges Creek for $93 million, securing a $60 million 10-year fixed rate loan from Freddie Mac at 3.59%, interest-only for 5 years. The loan’s interest rate was locked in October. The $33 million equity investment was primarily funded from the net sale proceeds of The Academy, a 175,000 sq. ft. office building in North Hollywood, CA, which was sold in October. Alara Hedges Creek is a low-density garden style community situated on 20 acres. The property is located in the Portland suburb of Tualatin, near an abundance of upscale retail destinations, recreation and entertainment options. Kennedy Wilson’s value-add asset management strategy includes unit renovations with upgrades to the appliances, countertops and flooring.

On Wednesday, Kennedy Wilson and its partner sold The Grove for $96 million, generating $58 million in net proceeds, including $29 million to the company which equates to a 5.0x equity multiple over the life of the investment. Kennedy Wilson held a 50% ownership interest in The Grove.

On Wednesday, Kennedy Wilson refinanced Bella Vista at Hilltop, a wholly-owned asset, with a new $175 million 10 year fixed-rate loan at 3.50% from Fannie Mae, interest-only for the entire term. The loan’s interest rate was locked in September. The property previously had two loans totaling $126 million at an average interest rate of 4.6%, of which $91 million was due to mature in June 2017. This represented the company’s largest debt maturity in 2017.

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