Kennedy Wilson-LeFrak Multifamily Joint Venture Refinances $100M Real Estate Portfolio

International real estate investment and services firm Kennedy Wilson (NYSE: KW) today announced that the company’s joint venture with The LeFrak Organization has refinanced a portfolio of three multifamily properties with new debt in the amount of $71.2 million at an interest rate of 4.39%. Terms include ten-year fixed-rate financing.

"This refinance and the rate reduction will allow the venture to materially lower the leverage on the portfolio, reducing interest expense by $1.5 million a year and thereby increasing income and cash flow,” commented Robert Hart, president and CEO of Kennedy Wilson Multifamily Management Group. "We are thus further able to take advantage of value-added acquisition opportunities in the multifamily market.”

The refinanced properties are located in California and Oregon. The Kennedy Wilson-LeFrak joint venture holds over 3,000 apartment units in California, Oregon and Washington. In addition to these units, Kennedy Wilson and its partners have acquired an additional 4,000 units this year.

Kennedy Wilson has become one of the premier West Coast real estate investment partners of The LeFrak Organization since their first collaboration in 2008, when The LeFraks acquired Kennedy Wilson’s interest in the 9701 Wilshire Boulevard Beverly Hills office tower. The two firms have since ventured on nearly $500 million of other real estate investments.

Jamie LeFrak, principal of The LeFrak Organization, said, "We are pleased with our partnership with Kennedy Wilson for these assets and with this opportunity to strengthen their balance sheets.”

CB Richard Ellis, through its Fannie Mae DUS lending program, served as the lender.

Brian Eisendrath, senior vice president of CB Richard Ellis, commented, "CBRE was able to capitalize on the strong sponsorship of the KW-LeFrak venture and secure extremely favorable fixed-rate debt, creating additional cash flow to the partnership.”

About Kennedy Wilson

Founded in 1977, Kennedy Wilson is an international real estate investment and services company headquartered in Beverly Hills, CA with 21 offices in the U.S. and Japan. The company offers a comprehensive array of real estate services including property and asset management, brokerage and auction services, and construction and trust management. Through its fund management and separate account businesses, Kennedy Wilson is a strategic investor and manager of real estate investments in the U.S. and Japan. For further information on Kennedy Wilson, please visit www.kennedywilson.com.

About The LeFrak Organization

The LeFrak Organization is recognized as one of the world’s foremost building and development firms, owning an extensive portfolio of residential, office, hotel and retail properties. LeFrak also is an active investor in securities, along with providing capital to specific strategic private investments consistent with its principles. The company, moreover, is a major investor in gas and oil exploration and production, and wind energy. To learn more about The LeFrak Organization, visit www.lefrak.com.