Commercial Real Estate Purchase: Kennedy Wilson Buys Apartments
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Commercial Real Estate on Thursday, June 28, 2012.
An apartment community with over 530 units in California was recently purchased by a real estate investment trust known as Kennedy Wilson. The total purchase amount for this commercial real estate purchase was $86.5 million. The Hayward complex was financed with monetary assistance from Freddie Mac as well as funds that the company had set aside.
Freddie Mac provided funds for a total of $68.1 million of the apartment complex purchase, which is nearly 80 percent of that property acquisition. The finance agreement for Freddie Mac is said to be on a note for 10 years. The rest of the purchase was made on investing funds from Kennedy Wilson and its partners.
Kennedy Wilson and its partners have acquired over $6.5 billion in secured debt and real estate purchases made since 2010. This is all through both consolidated investments as well as joint ventures. There is no sign of the real estate investment trust stopping anytime soon.
When a company makes the decision to begin looking into a commercial real estate purchase, there are a number of factors that must be considered. For example, a company needs to ensure that the purchase will be to their benefit now and in the future. It is critical to make certain that when a purchase is made that the purchasing company is going to benefit financially. One step in doing this is to protect one's rights in the purchase agreement under California state law while also ensuring that the dwelling is in adequate shape.
Source: Oakland Tribune, "Hayward apartments bought for $86.5 million," George Avalos, June 13, 2012