Dealmaker: Kennedy Wilson Acquires Two Salt Lake City Apartments

Kennedy Wilson, Beverly Hills, Calif., acquired two Salt Lake City, Utah-area multifamily properties for $92.5 million in an off-market transaction.

The firm acquired Santa Fe Apartments, a 492-unit community in Cottonwood Heights, for $79.5 million and 88-unit Creekview Apartments in Midvale for $13 million.

“With its dynamic economic climate, well-run state government and highly educated workforce, Salt Lake City consistently emerges as a compelling market for real estate investment,” said Kennedy Wilson Managing Director Shem Streeter. “We continue to see strong interest from millennials and many other groups of renters in easily accessible suburban locations based on relative affordability and proximity to both high paying employers and outdoor recreation.”

Streeter said Kennedy Wilson invested $21.5 million of equity in Santa Fe Apartments and secured a $59.1 million 10-year fixed-rate loan at 3.9 percent. It invested $4.8 million of equity and secured an $8.6 million interest-only loan for Creekview. The equity investments for both acquisitions used proceeds generated through a reverse 1031 exchange.

Located one mile apart, Santa Fe and Creekview are close to the I-215 freeway and neighboring retail centers with tenants including Walmart, Target and Bed, Bath & Beyond. Santa Fe offers both market rate and affordable units that average 790 square feet. Creekview’s entirely market-rate offerings average 850 square feet. Kennedy Wilson plans a value-add asset management plan, including investing $5.3 million across both properties in interior unit renovations, and upgrades to common areas.

Including these acquisitions, Kennedy Wilson now owns nearly 1,400 multifamily units in the Salt Lake City area.