NORWALK, CA – December 23, 2008 – (RealEstateRama) — Following its carefully constructed three-year asset disposition plan, Kennedy Wilson Multifamily Management Group (KW Multifamily) has sold The Courtyards, a 153-unit apartment community at 12401 Studebaker Road in Norwalk, CA. KW Multifamily is a division of the Beverly Hills-based international real estate services and investment company Kennedy Wilson.
The Courtyards was purchased by Advanced Real Estate Services, Inc., a tenants in common (TIC) syndicator which had previously purchased two other KW Multifamily assets in Lakewood, CA and Montebello, CA. A Lake Forest, CA-based investment firm whose portfolio currently includes over 5,500 apartment units in Southern California, Advanced purchased The Courtyards for $21.9 million.
“We recognized the benefit of a concentrated market presence,” said Rick Julian, president of Advanced. “We own nearly 1,000 units within three miles of The Courtyard Apartments. This logistic benefit coupled with the close location of our Anaheim-based construction company makes this property a perfect candidate for a full renovation and repositioning.”
According to Bob Hart, president & CEO of KW Multifamily, his company purchased The Courtyards from CT Realty in early 2006. “Our plan was to add value to the property by executing a carefully conceived revitalization program to decrease vacancies and increase revenues. We were successful in increasing the latter by over 20 percent during our tenure.” Hart also noted that KW Multifamily had targeted a three-year hold for The Courtyards before disposing of the asset. “We’re delighted to have been able to meet this schedule despite the current dislocations in the real estate markets.”
Stewart Weston of Marcus & Millichap represented both sides in the transaction.
Located at the junction of the 105, 605 and 5 freeways, The Courtyards is a garden-style apartment community with its 153 units located in 16 two-story and one-story wood-frame structures. The project offers seven different unit types from 72 one-bedroom/one-bath apartment homes, to 20 three-bedroom/two-bathroom units. Common area amenities include two swimming pools, a whirlpool spa, arbor-covered
picnic/barbeque area, recreation room, fitness center and two laundry facilities. Parking for 234 cars is provided on-site.
“We intend to re-deploy the revenue generated by this sale to acquire other undervalued multifamily assets in urban or suburban areas in California and the Pacific Northwest,” Hart went on. “We see the current environment providing our company with a variety of opportunities to acquire these types of properties and we have both the experience and the capital to do so.”
Founded in 1977, Kennedy Wilson has offices in 20 U.S. cities and Japan. It seeks value-added opportunities in partnership with its clients in pursuit of above-market investor returns and higher real estate values. KW Multifamily is actively involved in the acquisition, repositioning, management, leasing and disposition of apartment assets in the Western United States. Over its nine-year history, the company has purchased approximately 14,000 apartments in California, Oregon and Washington. For further information, visit www.kennedywilson.com.
