Home New mexico real estate Kennedy Wilson pays $264 million for multi-family assets

Kennedy Wilson pays $264 million for multi-family assets

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Beverly Hills-based real estate investment firm Kennedy-Wilson Holdings Inc. and its partners have acquired three multifamily properties for a total of $264 million.
The properties acquired were the 180 Central Park Commons units in Idaho, the 221 Paceline units in Washington and the 504 AYA ABQ units in New Mexico. The total purchase price of $264 million did not include closing costs.

Kennedy Wilson now owns about 50% of the properties. The company and its partners have invested $149 million in equity.
Kennedy Wilson expects to add $6 million to its initial annual net operating income.
The company plans to embark on a value-added strategy for all three properties.

“Central Park Commons, Paceline and AYA are ideal additions to our growing collection of properties that cater to residents seeking an outdoor-focused suburban lifestyle close to the economic vibrancy of downtown Boise, Seattle and Albuquerque,” Kurt Zech, multifamily division president of Kennedy Wilson, said in a statement. “Identifying high-quality communities that offer relative accessibility in booming markets is a hallmark of Kennedy Wilson’s West Coast multi-family investment process, and we are excited to build on this strategy while creating additional value and expanding our presence in these key markets with the support of our strategic partners.

Kennedy Wilson has been busy. Last month, Toronto-based Fairfax Financial Holdings Ltd. agreed to make a preferred stock investment of $300 million in the company. Kennedy Wilson plans to use the money for its development pipeline and real estate investments and to repay unsecured bank loans. Fairfax also increased its first mortgage target within Kennedy Wilson’s leveraged investment platform from $2 billion to $5 billion.

Fairfax Financial had previously invested in Kennedy Wilson, including a $100 million equity investment in 2010. The two companies have partnered for $8 billion in acquisitions, including $5 billion in real estate investments.