Kennedy Wilson Continues Western U.S. Expansion

The firm and its partners paid $264 million for properties in three states.

AYA ABQ in Albuquerque, N.M. Photo courtesy of Kennedy Wilson.

Kennedy Wilson added three multifamily properties totaling 905 units across three states—Idaho, New Mexico and Washington—for $264 million as it continues its expansion in the Western United States.

The Beverly Hills, Calif.,-based global real estate company acquired the assets with partners in separate transactions. Kennedy Wilson has approximately 50 percent ownership in the acquisitions, which were completed within the company’s co-investment portfolio. Kennedy Wilson and its partners invested $149 million of total equity, including $75 million by Kennedy Wilson.

Kennedy Wilson will immediately begin value-add plans at the properties: Central Park Commons, a 180-unit garden-style apartment community in Meridian, Idaho; Paceline, a 221-unit apartment community in Shoreline, Wash.; and AYA ABQ, a 504-unit garden-style apartment community in Albuquerque, N.M. Plans include renovating unit interiors, refreshing common areas and enhancing amenities.

Kurt Zech, president of Kennedy Wilson’s multifamily division, said in a prepared statement the properties cater to residents seeking a suburban, outdoor-oriented lifestyle within close proximity to downtown Boise, Seattle and Albuquerque.

Property Details

AYA ABQ, located at 5324 San Mateo Blvd., in Albuquerque, was completed in 1985 and has about 94.8 percent occupancy. Yardi Matrix reported the most recent owner was Laguna Point Properties, which acquired the property in October 2018 for an estimated $47.3 million from Peak Capital Partners. Rents ranged from $1,207 to $1,525 for the one- and two-bedroom units with square footage between 551 and 945 square feet, according to Yardi Matrix data. Amenities include a fitness center, volleyball court, playground, two swimming pools and spas and controlled access. Apartments have washers and dryers in all units, fireplaces in most and private balconies or patios.

Paceline, 17202 Aurora Ave. North, Shoreline, is a partially affordable six-story property completed in 2018 and has 94.6 percent occupancy. The most recent previous owner was Rush Cos. and the property was subject to a $49.1 million loan funded by Fannie Mae in July 2019, according to Yardi Matrix data. Rents range from $1,218 for a studio to $3,001 for a two-bedroom unit with a few one-bedroom/two-bath and two-bedroom/two-bath townhouse units renting from $2,158 to $3,204, Yardi Matrix reported. Unit size ranges from 461 to 1,159 square feet. Approximately 45 units are reserved for low-income housing. Amenities include controlled access, a fitness center, clubhouse and electric charging stations. All units have washers and dryers and some have private balconies or patios.

Central Park Commons, 303 West Penwood St., Meridian, was built in 2019 and has 97.7 percent occupancy. Kennedy Wilson acquired the property in January from Aaron Elton for an undisclosed price, according to Yardi Matrix. One-, two- and three-bedroom units range in size from 925 to 1,100 square feet with rents from $1,386 to $1,778, Yardi Matrix reported. Amenities include washers, dryers and quartz countertops in all apartments and private balconies or patios. Community amenities feature a pool, movie/media room, clubhouse with kitchen, community patio with outdoor kitchen, fitness center, yoga studio and basketball court.

Earlier West Coast Deals

In June, Kennedy Wilson launched a $1.5 billion apartment platform with an unidentified global investor as a joint venture partner to acquire and manage core-plus communities in Western states. The platform was seeded with an $800 million portfolio and the joint venture planned to target about $700 million in additional acquisitions.

The firm has been active in the Boise, Seattle and Albuquerque markets before these recent transactions. In June, Kennedy Wilson acquired three properties totaling 640 units in the Boise region, including one each in Boise and Meridian that had been purchased with real estate investment company Roundhouse. A month later, Kennedy Wilson acquired Sombra del Oso, a 344-unit apartment community in Albuquerque for $65 million. Earlier this year, Kennedy Wilson and Goldman Sachs Asset Management acquired the 236-unit Coppins Well in Seattle for $106.5 million.

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