Kennedy Wilson Buys in California

Zacks

Kennedy Wilson (KW), a real estate investment trust (:REIT), has recently announced the acquisition of a 544-unit multi-family community named Waterford in Hayward, California for $86.5 million. Kennedy Wilson and its partners invested $18.4 million while the remaining $68.1 million were financed by Freddie Mac at a fixed-rate interest of 3.69% for 10 years.

Waterford comprise of 29 two- and three-storied residential buildings with several amenities such as a leasing center, fitness center, two swimming pools and spas, and a children’s playground. Kennedy Wilson further plans to renovate and re-develop the property to augment its aesthetic value.

The property is strategically located in the job-centric East Bay area near the San Mateo Bridge. Its connectivity to the Silicon Valley, South Bay, and San Francisco further enhances the potential of higher asking rents for the property.

Since 2010, Kennedy Wilson and its institutional partners have acquired approximately $6.6 billion worth of real estate and secured debt through joint venture and consolidated investments

Headquartered in Beverly Hills, California, Kennedy Wilson offers a wide array of real estate services including auction, conventional sales, property services, research and investment management with 23 offices in the U.S., Europe and Japan. As of March 31, 2012, the value of the real estate assets under the company’s management stood at $11.8 billion.

Kennedy Wilson currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We have a long-term Neutral recommendation on the stock. One of its competitors, CBRE Group, Inc (CBG) also holds a Zacks #3 Rank.

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