In a three-way venture, Kennedy Wilson, RECP/Urban Partners and Capri Capital Partners LLC have acquired Serenade, a 400-unit apartment community in Oxnard, Calif. for $81.5 million. The seller was California Urban Investment Partners.
A resort-style complex in Southern California, Serenade is part of RiverPark, a master-planned development. RiverPark covers 702 acres and includes retail options such as Whole Foods, Target and REI in addition to entertainment, offices, schools and 14 parks. Serenade contains 14 residential buildings with a wide variety of one-, two- and three-bedroom residences.
“Serenade is a rare, core apartment investment opportunity and a great addition to our portfolio of multifamily properties in California,” says Robert Hart, president and CEO of Kennedy Wilson Multifamily Management Group. “Our focus has been on supply-constrained, infill West Coast markets, and this acquisition is a perfect fit for our strategy.” The property sale closed in early September.
With 21 offices in the United States and Japan and headquartered in Beverly Hills, Calif., Kennedy Wilson (NYSE: KW) is an international real estate investment and services company.
Because development in Ventura County and the city of Oxnard is subject to a number of slow-growth initiatives, future development on the scale of RiverPark is virtually impossible for a minimum of 18 years without voter approval, according to Kennedy Wilson.
“Serenade is an institutional-quality, well-designed core asset that is located in a market with significant barriers to entry and will be complementary to the other investments made within our Urban Fund to date,” emphasizes Kenneth Lombard, president of Capri Urban Investors and partner at Capri Capital Partners.
Headquartered in Chicago, Capri Capital Partners is the investment manager of Capri Urban Investors LLC, a real estate private equity fund.
This acquisition represents the second major joint venture between Kennedy Wilson and RECP/Urban Partners. “We continue to see the excellent rent growth potential as the RiverPark master-planned community and The Collection shopping center reach completion in the years ahead,” says Paul Keller, founding principal of Los Angeles-based RECP/Urban Partners.
Urban Partners is a real estate planning, investment, development and management firm with expertise in complex financial structures as well as urban entitlement processes.
Among the many amenities at Serenade are a fully equipped fitness center with cardio theater machines, full sound system, yoga and Pilates floor, plus weight machines. Other amenities include a clubhouse with large-screen TV, a resort-style pool with spa, sundeck, barbecues, an outdoor fire pit and a 1.3-acre public park.