Kennedy Wilson Buys 5-State Portfolio

Volare in Las Vegas. Image courtesy of Kennedy Wilson

Drawn by a desire to purchase and add value to high-quality apartment communities in fast-growing markets, Kennedy Wilson has acquired five Mountain State and Pacific Northwest properties. The company paid $342 million for the portfolio, which totals 1,457 units. Kennedy Wilson has an average ownership of 38 percent in the assets. The firm and its equity partners invested $122 million of equity in the portfolio, including closing costs. 

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Situated in the increasingly sought Western states of Colorado, New Mexico, Nevada, Oregon and Washington, the communities expand Kennedy Wilson’s multifamily holdings of institutional-quality, garden-style properties in swiftly growing markets.

The acquisition comes little more than a month after Kennedy Wilson paid $63 million for an affordable community in Santa Maria, Calif.

Growing footprint

With more than 1,000 Mountain State units in the portfolio, Kennedy Wilson’s growing presence now includes more than 8,300 multifamily units in the region, including those currently under development. In addition, almost 450 units were added to the Kennedy Wilson Pacific Northwest portfolio, bringing the company’s total in that region to 11,700, again including those under development. Kennedy Wilson’s overall multifamily portfolio amounts to 29.500 units.

According to a 2018 report by the Brookings Institute, each of the fastest-growing states among the prime renting cohort Millennial generation was either in the South or West, with two of the three fastest-growing cities (Colorado Springs and Denver) located in Colorado. The trend is a continuation of U.S. migration away from the Northeast and Midwestern states to those in the Sunbelt, the Mountain States and Pacific Northwest.

Kennedy Wilson’s overall strategy is to add value to high-quality, income-generating communities where it has the opportunity to add substantial value.