Harbor Island sale
Make that one more Bay Area apartment deal
Business Section, San Francisco Chronicle, September 19, 2005
Summer House website.
Kennedy Wilson (press release), which bought three residential properties in the North Bay earlier this month, announced last week that it had bought the 615-unit Harbor Island apartments in Alameda for $122 million, or about $198,000 per unit.
The seller was Fifteen Asset management of Miami, which had held the 19-acre property since the mid-'90s. The company had evicted hundreds of angry tenants to prepare it for the sale.
"We're going to try to forget about that and move forward," said Bob Hart, senior managing director at Kennedy Wilson.
The Harbor Island complex, built in 1965 to provide housing for civilian workers at the now-closed Naval Air Station Alameda, has 21 floor plans with a mix of one-, two- and three-bedroom units. Every unit has either a patio or balcony.
But the look is tired, Hart said.
"It kind of looks like a stucco box with wood balconies and wood trim," he said. "We're going to give it a New England wood plank siding. We want an oceanfront, family type community feel to it."
Kennedy Wilson will spend $20 million on improvements, including renovating apartment interiors, building a new fitness center and recreation room, refurbishing the pool and playground, and upgrading landscaping and exteriors.
The average unit size is about 1,000 square feet. Rents will range from $1,400 to $1,800, and the entire rehab will be complete in about 18 months, Hart said.
"It's definitely workforce housing," Hart said. "It will be for working-class families and individuals who are looking for quality rentals at an affordable price."
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