Dealmaker: Kennedy Wilson Acquires Two Multifamily Assets for $73M

Kennedy Wilson, Beverly Hills, Calif., acquired two multifamily properties in Utah and Idaho for $73 million.

In the Salt Lake City, Utah area, the firm invested $20 million of equity in Alpine Meadows apartments and took on a 10-year, $29 million loan at 4.28 percent. It acquired the property through a 1031 exchange with profits generated from selling 260-unit apartment community Bay Village in Vallejo, Calif.

“Salt Lake City is experiencing some of the most significant population and wage growth in the country as well as a boom in commercial and infrastructure development that is fueling local investment activity,” said Kennedy Wilson Managing Director Shem Streeter.

Located 15 miles from downtown Salt Lake City, Alpine Meadows is a low-density, garden-style two-story walk-up community in Sandy, Utah. The area is home to large tech companies including Adobe, Microsoft, eBay, Intel and Kennedy Wilson plans to implement a $3 million upgrade to refresh both unit interiors and common amenities.

The acquisition increases Kennedy Wilson’s Salt Lake City-area multifamily portfolio to 2,387 units.

The firm also acquired 188-unit Cottonwoods Apartments in Boise, Idaho for $24 million in an off-market transaction. It invested nearly $11 million of equity including closing costs and secured a $14 million Freddie Mac loan at a fixed 4.33 percent rate for 10 years.

Nick Bridges, Managing Director at Kennedy Wilson, said new residents are drawn to Boise by the strong local education system, high quality employment opportunities, relative housing affordability, lower taxes, job growth and lifestyle perks. “With Cottonwoods, we have the opportunity to take a very well-located property and add significant value through a top-to-bottom renovation program that will bring the property in line with the best multifamily properties in the area,” he said.

Beginning immediately, Kennedy Wilson will initiate a large-scale renovation and rebranding of the property. It will invest more than $6 million to upgrade unit interiors, improve the clubhouse, fitness center and pool and address deferred maintenance projects. Upon completion the apartments will be renamed Reedhouse after the historical name of the Boise River.