Kennedy Wilson Buys Albuquerque Apartments
The firm plans to invest $7 million in upgrades to the 344-unit property.
Kennedy Wilson has acquired Sombra del Oso, an apartment community in Albuquerque, N.M. The 344-unit property fetched $65 million, excluding closing costs. Investing $28 million of equity, Kennedy Wilson also used proceeds from recent sales and a 10-year loan of $39 million at a fixed rate of 2.9 percent.
Situated at 6000 Montano Plaza Dr. NW in Albuquerque’s Westside district, Sombra del Oso is a garden-style, two-story apartment community that is set on 16 acres. The community features one- and two-bedroom apartments ranging in size from 630 to 850 square feet. Apartments feature in-unit washer-dryers, ceiling fans, fireplaces, storage units and high-speed Internet access.
According to the firm, the property is currently expected to add approximately $3 million of initial annual net operating income upon acquisition. NOI is anticipated to increase over time, due to Kennedy Wilson’s plans to invest about $7 million in capital improvements. Those enhancements will include upgrades to unit interiors, amenities and common areas.
The suburban neighborhood of Taylor Ranch, in which Sombra del Oso is located, is 8 miles northwest of downtown Albuquerque. The area features canyons, desert land and views of both mountains and the Albuquerque skyline.
Sombra del Oso residents are about half a mile to a full mile away from three shopping centers, 12 minutes from Los Ranchos-Journal Center commuter rail station and 39 minutes from the Albuquerque International Sunport. Kirkland Air Force Base is 37 minutes away. Central New Mexico Community College is 12 minutes from Sombra del Oso, while the University of New Mexico is 17 minutes away.
In terms of parks and recreation, Somba del Oso is five to seven minutes from Open Space Visitor Center, Rio Grande Community Farm, Boca Negra Canyon and Petroglyph National Monument.
The last attraction on that list is an iconic archaeological site featuring centuries-old carvings. Rio Grande Nature Center State Park is 16 minutes away.
Late last month, Kennedy Wilson formed a $1.5 billion investment joint venture to acquire and manage core-plus assets in western states.