Kennedy Wilson Trades Apartment Complex in Suburban LA
- Apr 14, 2015
Kennedy Wilson has walked away with $61.1 million on the sale of The Enclave, a 306-unit apartment property in Paramount, Calif., roughly 15 miles south of Los Angeles. Joint venture partners Bridge Investment Group Holdings, and Starr Cos. snapped up the Class A asset.
KW relied on Institutional Property Advisors, an entity of Marcus & Millichap Real Estate Investment Services, to market the property, which occupies 4.7 acres at 13801 Paramount Blvd. KW had owned the Enclave for nearly a decade, having acquired it from the developer, Jan Development, for $51.5 million in a partnership with Hanover Financial in 2006.
Investors are quite keen on the Greater Los Angeles apartment market, which continues to thrive. According to a report by Marcus & Millichap, effective rents will likely increase more than 5 percent in 2015, and while robust development is expected to take the average occupancy level down a notch, the vacancy rate is on track to remain enviable at an anticipated 3.8 percent. And The Enclave had even more to offer eager investors than location.
“The Enclave’s distinctive architectural touches and consummate amenity package differentiate it from the competitive product in the area and make it one of the premier multi-family investment assets in southeast Los Angeles County,” Greg Harris, an executive vice president with IPA, noted in a press release.
Kennedy Wilson’s hasn’t been on a multi-family selling frenzy, but it has disposed of other assets this year, including the Aztec Theatre in San Antonio.