The Real Deal Los Angeles

Kennedy Wilson buys 157 townhouses in Santa Clarita for $61M

Units were designed as condos and developed in 2013 by Resmark Companies

August 30, 2016 03:30PM
By Cathaleen Chen

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The town houses at 18179 West Terra Verde Place

The town houses at 18179 West Terra Verde Place

Kennedy Wilson has acquired a 157-unit townhouse complex in Santa Clarita for $61 million, The Real Deal has learned.

The seller of the 12.5-acre property at 18179 West Terra Verde Place was Resmark Apartment Living, an asset management firm based in Los Angeles. Resmark’s former development partner Archstone, which ceased to exist when it split into Equity Residential and AvalonBay, developed and mapped the site for condos several years ago. But the units were ultimately rented out as townhomes instead. 

Dubbed the Townhomes at Lost Canyon, the Class A complex features units with three bedrooms, three bathrooms and a two-car garage. Amenities include a swimming pool and spa, fitness center and playground.

Kennedy Wilson invested $19 million of equity to acquire the asset and secured a $43 million 10-year fixed rate loan through Fannie Mae.

“It’s a high quality asset in a location that appeals to families who want high-quality living with an easy commute to Los Angeles property,” Kennedy Wilson’s director of multifamily investments Nicholas Bridges told The Real Deal. “This is going to be a long-term hold.”

The listing agent was Mike Murphy of Moran & Company.

At $388,535 per unit, the Townhomes’ price tag is more than twice as expensive as the 12-month submarket average sales price of $165,113 a unit, according to CoStar. The complex is 98 percent leased right now, according to Bridges.

This brings Kennedy Wilson’s multifamily unit count in Southern California to 2,958 units, he added.