Kennedy Wilson Fund Pays $95M for Denver Asset
The community previously traded for more than $103 million.
A commingled real estate fund managed by Kennedy Wilson has paid $94.8 million for The Fletcher Southlands, a 320-unit community in Aurora, Colo. CBRE Investment Management previously owned the asset, according to Yardi Matrix information.
The new owner plans to implement a targeted renovation program and improve operational services at the property.
The property previously traded in April 2021 for $103.3 million—nearly 9 percent above the current sale price—the same data provider shows. CBRE IM had acquired the asset from Origin Investments.
READ ALSO: Positioning Multifamily Portfolios for the Next Cycle
Completed in 2001 at 22959 E. Smoky Hill Road, the community is close to a host of retail and dining options, including Saddle Rock Shopping Center. Downtown Denver is 29 miles away, while Denver International Airport is 19 miles south.
The garden-style property encompasses 13 three-story buildings across more than 23 acres. The unit mix consists of one-, two-, three- and four-bedroom floorplans ranging from 855 to 1,481 square feet. Apartments also have private balconies or patios.
Common-area amenities include a fitness center, swimming pool and dog park, along with communal game and dining spaces. The property also has volleyball and basketball courts, a playground, a grilling area and a business center.
Denver sales drop year-over-year, prices go up
Denver’s multifamily transactions activity in the first 10 months of the year involved 9,545 units that traded for a combined $2.3 billion, Yardi Matrix information shows. The figure is considerably lower compared to the $3.6 billion registered during the same period of last year, when 14,836 apartments changed hands.
However, the average price per unit rose year-over-year. As of October, assets traded at an average of $293,215 per unit, up from $286,777 during the same period last year.
In September, Alliance Residential Co. sold Broadstone Sterling Ranch, a 332-unit community in Littleton, Colo., for $121 million. This amounted to about $364,458 per unit, considerably above the metro’s average.
Another notable deal in the metro was FJ Management’s acquisition of Outlook Table Mesa, a 250-unit upscale property in Wheat Ridge, Colo. Evergreen Devco sold the asset for $97 million.
