Rock Creek Landing in Kent, Washington totals 576 units.
KENT, WASHINGTON — Real estate investment firm Kennedy Wilson (NYSE: KW) has sold Rock Creek Landing, a 576-unit apartment community in Kent, about 20 miles south of Seattle, for $109 million. The buyer was not disclosed.
The cash proceeds of $73 million from the transaction will be used to fund the company’s recent acquisition of 90 East, a 573,000-square-foot, Class A office development in the Bellevue, Washington, area.
Rock Creek Landing is located at 1024 Central Ave. North in Kent. The property offers an indoor and outdoor pool, business center, community clubhouse and a coffee bar.
Kennedy Wilson purchased Rock Creek Landing in 2014 for $58 million as part of a $127 million acquisition of a three-property portfolio of multifamily assets located across several submarkets south of Seattle. The company has since invested about $6 million in upgrades to the community’s leasing center, unit interiors and common areas.
During its time under Kennedy Wilson’s ownership, Rock Creek Landing generated net operating income of approximately $5.3 million. Combined, the sale of Rock Creek Landing and acquisition of the 90 East office property in Bellevue are expected to increase annual net operating income by about $7 million.
“The sale demonstrates our ability to leverage our vertically integrated investment platform to identify undermanaged assets,” says Shem Streeter, managing director of Kennedy Wilson’s multifamily investments division.
“With an abundance of older multifamily housing stock in our target markets, to look to continue replicating our value-add asset management strategy on new investment opportunities,” adds Streeter.
The stock price of Beverly Hills-based Kennedy Wilson closed at $18.75 per share on Friday, July 7, down from $19.01 per share a year ago.
Following the sale, the company’s portfolio in Washington totals approximately 9,700 multifamily units and 1.4 million square feet of space in other commercial sectors.
— Taylor Williams