GRAND TERRACE, CA-Kennedy Wilson of Beverly Hills has sold its 228-unit Crest Apartments to 1031 exchange buyer Osage Tower Ltd. of Los Angeles for $26.5 million. Bob Hart, president and CEO of KW Multifamily, notes that his company had partnered with Lehman Bros. in buying the nine-acre San Bernardino County property in 2004 for $19.3 million and invested an additional $1.15 million in improvements.
The Crest complex, at 22491 DeBerry St., in the bedroom community of Grand Terrace, close to Redlands, was built in 1978 and comprises 19 two-story buildings with 144 one-bedroom and 84 two-bedroom garden style apartments. The complex includes 386 parking spaces, 234 of them semi-private garages. Amenities include a swimming pool and spa, a clubhouse, a fitness center, laundry facilities and a children's playground.
Kennedy Wilson was represented by Robin Ossenbeck of the Los Angeles office of Hendricks & Partners, with the buyer represented by Martin Ensbury of RE/Max Commercial. Ossenbeck says that the buyer plans to continue the renovations the seller started by renovating the remaining 100 units that need work.
Ossenbeck adds that the purchase closed at a price per unit that is among the highest paid for comparable properties in the area. “However the buyer saw an opportunity to complete the renovations, improve collections and improve the operations through improved management,” Ossenbeck says.
Hart comments that realizing the considerable return on investment in two years was a result of the KW Multifamily strategy of “adding value to underperforming assets in well located markets.”