Kennedy-Wilson Holdings Inc. (KW) recently disclosed that the company and its partners acquired a 388-unit multifamily property in Vancouver, Wash., a Portland Submarket for $39.5 million.
Positioned in the eastern Vancouver submarket, this multifamily property – The Pointe – includes 35 residential buildings comprising two and three story walk-ups. The property is well surrounded by retail amenities and recreation facilities and is close to several job centers, including top notch technology companies.
The acquisition is a strategic fit, given the strong potential of the Portland submarket. A growing tech center and favorable tax benefits are particularly driving the projected employment level and rent growth in the region higher.
The deal involved a total equity investment of $11.2 million. Of this 5% was contributed by Kennedy Wilson. Moreover, a $29.6 million 10-year loan on the property was secured by the company. This loan is an interest only loan for four years from Fannie Mae at LIBOR + 2.36%.
Kennedy-Wilson, which offers a wide array of real estate services – such as auction, conventional sales, property services, and research and investment management – is actively engaged in expanding its portfolio in vibrant markets across the U.S., Europe and Japan.
Notably, from Jan 1, 2010 through Sep 30, 2013, the company and its equity partners acquired around $10.6 billion of real estate related investments. We expect such a strategic investment to help the company enhance its portfolio quality, which will consequently be accretive to its earnings going forward.
Moreover, the current acquisition brings the company’s tally of global multifamily portfolio to 16,899 units, including 3,450 units in the Pacific Northwest region of the U.S.
Kennedy-Wilson currently carries a Zacks Rank #1 (Strong Buy). Other well-performing companies include FirstService Corp. (FSRV), E-House (China) Holdings Ltd (EJ) and Jones Lang LaSalle Incorporated (JLL). While FirstService and E-House carry a Zacks Rank #1 (Strong Buy), Jones Lang has a Zacks Rank #2 (Buy).
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