Kennedy Wilson adds apartment complexes in three states
Beverly Hills-based firm gets half stake in each for total outlay of $264 million
Global real estate investment giant Kennedy Wilson Holdings and its partners bought three Western U.S. apartment complexes in separate transactions that combined for $264 million.
The Beverly Hills-based firm acquired a half stake in the 180-unit Central Park Commons in Idaho, the 221-unit Paceline in Washington and the 504-unit AYA ABQ in New Mexico, the Los Angeles Business Journal reported. The $264 million purchase price did not include closing costs.
Kennedy Wilson now owns about 50 percent of the properties. The company and its partners invested $149 million of equity. Kennedy Wilson expects to add $6 million to its initial annual net operating income. It plans to employ a value-add strategy for each site.
“Central Park Commons, Paceline and AYA are ideal additions to our growing collection of properties that cater to residents seeking a suburban, outdoor-oriented lifestyle within close range of the economic vibrancy of downtown Boise, Seattle and Albuquerque,” Kurt Zech, president of Kennedy Wilson’s multifamily division, said in a statement.
He said identifying high-quality communities that provide relative affordability in expanding markets is the hallmark of Kennedy Wilson’s West Coast multifamily investment strategy.
The publicly traded company (NYSE:KW), with $22 billion in assets under management, has also invested in Southern California, including stakes in 10 residential properties, according to its website. In October, it unveiled plans to build 589 residential units across 32 acres owned by Cal State Channel Islands in Camarillo, in Ventura County.
[Los Angeles Business Journal] – Dana Bartholomew