Kennedy Wilson Sells L.A. Luxury Multi-Family Building for $74M
- Mar 02, 2012
March 2, 2012
By Nicholas Ziegler, News Editor
Kennedy Wilson has sold NoHo-14, a 14-story luxury apartment building in the NoHo district of Los Angeles’ San Fernando Valley, for $74 million.
According to a year-end report by Marcus & Millichap Real Estate Services Inc., as buyers move to secure assets while interest rates remain low, sales velocity will broaden across the county and quality scale. Wealth-management plays will drive cash-rich investors to coastal communities, where scarcity premiums result in cap rates averaging in the mid-4-percent to low-5-percent range. The NoHo transaction saw a 4.1 percent cap rate.
Kennedy Wilson originally acquired the building along with partners Guardian Life Insurance Company and RECP/Urban Partners as an REO asset in June 2010. The company converted the condominiums into apartments, implementing a new leasing program and enhancing property management. The building underwent a significant renovation as well, and the 11,000-square-foot ground-level retail space was leased to a golf retailer in a $3.8 million deal.
Robert Hart, president of Kennedy Wilson’s multi-family management group was pleased his team was able to sell “this iconic property as a very opportune time in the market,” he said. Kennedy Wilson assumed the $40 million Cigna fixed-rate financing on the deal.
Marcus & Millichap expects the Los Angeles market to “shift into a more vigorous job-growth cycle in 2012, expanding the renter pool and enabling owners to continue pushing rents.” In addition, “professionals unaffected by the recessions will increasingly lease high-end units near desirable lifestyle amenities in the Westside Cities, where Class A rent hikes will lead the county.”