Kennedy Wilson Expands in Vegas With $155M Buy
The firm has added 528 units to its portfolio.
Kennedy Wilson capped off a year of growth across its Western United States multifamily platform with the acquisition of 3001 Park, a 528-unit garden-style apartment community in Henderson, Nev., for $155 million.
The global real estate investment firm invested $56 million of total equity in the transaction and also secured a $102 million loan. Details about the loan were not disclosed.
Kennedy Wilson did not identify the seller but the most recent owner of the property at 3001 West Warm Springs Road was listed as McDowell Properties, according to Yardi Matrix data. McDowell Properties acquired the community in July 2018 from Acacia Capital for $77.8 million as part of a $133.8 million portfolio sale that included two other multifamily properties in the Las Vegas market, Yardi Matrix reported.
3001 Park was 95 percent occupied at the time of the acquisition by Kennedy Wilson. The firm plans to make value-add improvements over the next four years, including unit and amenity upgrades. The asset has one-, two- and three-bedroom units ranging in size from 720 square feet to 1,253 square feet. The property has washers and dryers in all units as well as fireplaces. Amenities include three swimming pools, two spas, a clubhouse, fitness center, business center, playground, tennis and basketball courts. There are 700 parking spaces and covered parking is available.
Kurt Zech, president of Kennedy Wilson’s multifamily group, said in a prepared statement the acquisition reflects the firm’s continued confidence in the Las Vegas region. Zech said the firm, which now has more than 2,300 market-rate units in the region, has had a long-time presence in the market. He noted the Las Vegas market has experienced one of the strongest recoveries in the nation.
Expanding Multifamily Investments
Zech said Kennedy Wilson made significant progress during 2021 in its strategy to expand into suburban markets surrounding rapidly expanding cities including Boise, Idaho; Seattle; Portland, Ore.; Salt Lake City; Denver and Albuquerque, N.M. He said those markets enable renters to find relative affordability and proximity to diverse employment markets.
In November, Kennedy Wilson teamed with Goldman Sachs Asset Management to acquire Arista Uptown in Broomfield, Colo., for $95 million. Kennedy Wilson took a 20 percent ownership in the 272-unit asset, which included a $44 million equity investment and $53 million loan. Kennedy Wilson purchased another Denver area property—the 332-unit Griffis Marston Lake in Littleton, Colo.,—in September for $134 million.
In October, Kennedy Wilson acquired two Seattle apartment communities totaling 547 units—The Bristol at Southport and Geo Shoreline—for a total of $265 million, with $109 million of its own equity, and $158 million in acquisition financing.
Kennedy Wilson’s multifamily platform expanded last year from 29,840 units at the beginning of 2021 to more than 35,000 units across a global portfolio that includes 4,500 units under development. Most of those developments will be completed by the end of 2023. Some of that development is occurring in Ireland, where Kennedy Wilson is one of the country’s most active multifamily real estate investors and developers. The firm is developing nearly 1,000 multifamily units in Dublin including 232 units at The Cornerstone, 287 units at The Grange and 471 units at Coopers Cross.
In the Western U.S., Kennedy Wilson is progressing on a 3,500-unit pipeline that includes the 268-unit Oxbow in Bozeman, Mont. Other projects are being developed adjacent to communities Kennedy Wilson already owns in California and Idaho. Ongoing projects include the 32-acre master-planned Anacapa Canyon development in Camarillo, Calif., where 310 units will be built next to University Glen.