San Francisco, California – We have some 1031 Exchange information on various types of 1031 Exchange transactions. A Commercial Real Estate investor can have a Simultaneous Exchange. This is a 1031 Exchange of the relinquished property for the 1031 replacement property that occurs at the same time. There is also the Delayed 1031 Exchange. The Delayed 1031 Exchange is the most common type of 1031 exchange. A Delayed 1031 Exchange occurs when there is a time gap between the transfer of the Relinquished Property and the purchase of the 1031 Exchange Replacement Property. The investor must remember that the Delayed 1031 Exchange is subject to strict time limits. These 1031 Exchange time limits are set forth in the Treasury Regulations.
We have information on the sale of a Apartment Community being sold in California. A (JV) Joint Venture of Abacus Capital Group and QVT Mount Auburn Capital LP sold the Enclave at Adobe Creek Apartment Community. The Adobe Creek Apartment Community is located in Petaluma, California. Petaluma is about 40 Miles north of San Francisco. Petaluma is about 14 Miles west of Sonoma and many excellent California wineries. The multi-family investment group and the commercial real estate private equity fund sold the Enclave at Adobe Creek apartment community. They had purchased the investment property for $52 million, in the fall of 2009.
Kennedy Wilson and Partners purchased the Adobe Creek Apartment Community for $68 million. Kennedy Wilson and their partner purchased the Enclave at Adobe Creek with the help of $47.6 million in commercial loan financing. The investment property financing was from Freddie Mac. This 1031 Exchange candidate is a 492-unit south Petaluma apartment complex. This investment property is one of the largest in Sonoma County, California. So the Sellers made out well as they only held the property for approximately 15 months. Abacus Capital Group and QVT Mount Auburn Capital LP did put roughly $2 Million into the property for renovations, so they cleared about $14,000,000. We are not aware if they were in a 1031 Exchange although this is the perfect example of why investors jump on the 1031 Exchange.
Kennedy Wilson Property Fund III purchased this investment property with an affiliate of New York City-based DRA Advisors. The Enclave at Adobe Creek was built in 1984, and had some renovations completed in 2009. The Enclave at Adobe Creek is situated on approximately 32.19 acres. The Investment Property has 492 doors and the units are one-, two- and three-bedroom units. This investment property also has townhouses. This Apartment Community offers sun-filled living rooms with upgraded features like over-sized closets, fireplaces in select units and spacious private patios and balconies. The Tenants can take in the gorgeous views of the surrounding valley hills and natural landscape. This apartment community connects to all nearby conveniences with easy access to the 101 and 116 Redwood freeways.
The Sellers did some fine work on the property within their brief ownership stint. The Investment Property has five swimming pools, spa, a relaxing clubhouse, fitness center, tennis and basketball courts. This 1031 Exchange candidate also has outdoor picnic areas, on-site laundry facilities, a children’s playground and reserved parking for the Tenants and their guests. The California Apartment Community has Units that have an average size of 939 square feet. This Investment Property appears to be a fine deal as the and occupancy is currently around 96%.
Kennedy Wilson is an international commercial real estate investment and services company that was founded in 1977. Kennedy Wilson is headquartered in the affluent area of Beverly Hills, California. Kennedy Wilson also has 21 offices in the U.S. and in Japan. It appears that Kennedy Wilson will continues to pursue investment property opportunities in the Seattle area and the Northwest.
The report on the partners in this apartment community purchase is that they currently manages approximately $9 billion in commercial real estate assets. DRA Advisors LLC was founded in 1986.
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O’Reilly Commercial Realty LLC
Phone: (352) 237-2222