Kennedy Wilson added three multi-family properties totaling 905 units in three states – Idaho, New Mexico and Washington – for $264 million as it continues its expansion in the western United States.
The Beverly Hills, Calif.-based global real estate company acquired the assets with partners in separate transactions. Kennedy Wilson holds an approximate 50% stake in the acquisitions, which were made as part of the company’s co-investment portfolio. Kennedy Wilson and his partners have invested $149 million in equity, including $75 million by Kennedy Wilson.
Kennedy Wilson will immediately launch value-added plans at the properties: Central Park Commons, a 180-unit garden-style apartment community in Meridian, Idaho; Paceline, a 221-unit apartment community in Shoreline, Wash.; and AYA ABQ, a 504-unit garden-style apartment community in Albuquerque, NM. Plans include renovating unit interiors, refreshing common areas and improving amenities.
Kurt Zech, president of Kennedy Wilson’s multi-family division, said in a prepared statement that the properties appeal to residents seeking an outdoor-focused suburban lifestyle close to downtown Boise. , Seattle and Albuquerque.
AYA ABQ, located at 5324 San Mateo Blvd., Albuquerque, was completed in 1985 and has approximately 94.8% occupancy. Yardi Matrix reported that the most recent owner was Laguna Point Propertieswhich acquired the property in October 2018 for an estimated $47.3 million from Peak Capital Partners. Rents ranged from $1,207 to $1,525 for one- and two-bedroom units ranging in size from 551 to 945 square feet, according to Yardi Matrix data. Facilities include a fitness center, volleyball court, playground, two pools and spas, and controlled access. Apartments have washers and dryers in all units, fireplaces in most, and private balconies or patios.
Paceline, 17202 Aurora Ave. North, Shoreline, is a partially affordable six-story property completed in 2018 and 94.6% occupancy. The most recent previous owner was Cos Rush. and the property was the subject of a $49.1 million loan financed by Fannie Mae in July 2019, according to data from Yardi Matrix. Rents range from $1,218 for a studio to $3,001 for a two-bedroom unit with a few one-bedroom/two-bathroom and two-bedroom/two-bathroom townhouses renting from $2,158 to 3 $204, Yardi Matrix reported. Unit sizes range from 461 to 1,159 square feet. About 45 housing units are reserved for HLMs. Facilities include controlled access, fitness center, clubhouse and electric charging stations. All units have washers and dryers and some have private balconies or patios.
Central Park Commons, 303 West Penwood St., Meridian, was built in 2019 and is 97.7% occupied. Kennedy Wilson acquired the property in January from Aaron Elton for an undisclosed price, according to Yardi Matrix. One-, two-, and three-bedroom units range in size from 925 to 1,100 square feet with rents ranging from $1,386 to $1,778, Yardi Matrix reported. Amenities include washers, dryers and quartz countertops in all apartments and private balconies or patios. Community amenities include a pool, movie/media room, clubhouse with kitchen, community patio with outdoor kitchen, fitness center, yoga studio, and basketball court.
Past West Coast Deals
In June, Kennedy Wilson launched a $1.5 billion apartment platform with an unidentified global investor as a joint venture partner to acquire and manage core-plus communities in western states. The platform had an $800 million portfolio, and the joint venture planned to target around $700 million in additional acquisitions.
The company was active in the Boise, Seattle and Albuquerque markets prior to these recent transactions. In June, Kennedy Wilson acquired three properties totaling 640 units in the Boise area, including one in Boise and one in Meridian that had been purchased with real estate investment firm Roundhouse. A month later, Kennedy Wilson acquired Sombra del Oso, a 344-unit apartment community in Albuquerque for $65 million. Earlier this year, Kennedy Wilson and Goldman Sachs Asset Management acquired the 236-unit Coppins Well in Seattle for $106.5 million.