Kennedy Wilson Thriving on opportunity

Summer House

Summer House is a 615-unit community located just west of Oakland in Alameda, CA. Kennedy Wilson first purchased the property with a syndicate of investors in 2005, at which time the property was 100% vacant and in serious disrepair. The company then successfully executed a complete property renovation and repositioning program at the cost of $30 million. After leasing the property to stabilization, Kennedy Wilson sold its interest in the property to one of its equity partners in 2007.

In 2010, the opportunity arose to repurchase the asset off-market while assuming and restructuring the existing loan. Kennedy Wilson, in partnership with PCCP, LLC, purchased a 100% partnership interest in Summer House. In October of 2010, Kennedy Wilson secured a ten-year fixed rate loan with Freddie Mac at 4.31%, generating significant cash-on-cash returns for the partnership.