Dealmaker: Kennedy Wilson Acquires Albuquerque Apartment Community for $65M

Kennedy Wilson, Beverly Hills, Calif., acquired 344-unit apartment community Sombra del Oso in Albuquerque, N.M. for $65 million.

Sombra del Oso

The real estate investment firm invested $28 million of equity generated from recent asset sales and secured a $39 million loan 10-year loan at a 2.85 percent fixed rate.

“We first entered the Albuquerque multifamily market in 2019 to establish a foothold in a region that offers relative affordability, a strong job market and a great lifestyle for residents,” said Senior Managing Director Shem Streeter, who leads acquisitions for Kennedy Wilson’s multifamily division. He said the firm is encouraged by the region’s resilience during the pandemic and thinks there is significant upside in local multifamily “as investment continues to flood into the area and residents seek out high quality rental opportunities.”

Sombra del Oso is a two-story garden-style community on 16 acres in Albuquerque’s west side, six miles from downtown. Kennedy Wilson said it plans to invest $7 million to upgrade unit interiors, amenities and common areas.

Kennedy Wilson has added more than 2,000 units to its portfolio in the last six months, focusing on recycling capital into high-growth markets.