Kennedy Wilson Completes Financing and Sale of Multifamily Properties in Bay Area

  Kennedy Wilson Completes Financing and Sale of Multifamily Properties in Bay

    Company and partners finance Summer House Apartments, sell Rutherford

Business Wire

BEVERLY HILLS, Calif. -- January 3, 2013

International real estate investment and services firm Kennedy Wilson (NYSE:
KW) today announced that it added a supplemental loan to the existing
financing on Summer House Apartments, a 615-unit multifamily community that it
acquired with one of its investment partners in 2010. On December 31, 2012,
the company and its partner closed a $19.4 million Freddie Mac loan arranged
by Berkeley Point Capital. Including this transaction, the financing on Summer
House now totals $90.2 million at a fixed rate of 4.44% and maturity on
November 1, 2020. Kennedy Wilson’s initial investment in the property was $2.8
million. Through this financing and previous property cash flow, the company
has received a total of $3.8 million of distributions. Kennedy Wilson invested
15% of the equity in this property and, based on the distributions to date, is
receiving 30% of current distributions due to its promoted interest in the

“This transaction exemplifies the company’s ability to produce profits in a
variety of ways,” said William McMorrow, chairman and CEO of Kennedy Wilson.
“We were able to take advantage of current financing opportunities and return
the company’s original equity while maintaining ownership in a property
located in a growing market. Additionally, we were able to sell a property in
the same area that we believe has reached its stabilized value.”

On December 28, 2012, Kennedy Wilson, through its KW Property Fund III,
completed the sale of Rutherford Townhomes, a 66-unit apartment property in
Napa, California, for $8.7 million. The company’s KW Property Fund III
originally purchased the asset for $6.6 million in 2009, producing a 1.7x
gross equity multiple after the sale. Kennedy Wilson owns approximately 12% of
the fund before its promoted interest.

Kennedy Wilson has an ownership interest in 14,764 multifamily units in the
U.S., Japan and Ireland, including 5,311 units in the greater San Francisco
Bay Area.

About Kennedy Wilson

Founded in 1977, Kennedy Wilson is an international real estate investment and
services company headquartered in Beverly Hills, CA with 24 offices in the
U.S., U.K., Ireland, Spain and Japan. The company offers a comprehensive array
of real estate services including auction, conventional sales, property
services, research and investment management. Through its fund management and
separate account businesses, Kennedy Wilson is a strategic investor of real
estate investments in the U.S., U.K., Ireland and Japan. For further
information on Kennedy Wilson, please visit


Kennedy Wilson
Christina Cha
VP of Corporate Communication
(310) 887-6294
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