Kennedy Wilson, Goldman Sachs Buy Colorado Community for $95M
The property is part of a 200-acre master-planned development.
Kennedy Wilson has continued its buying streak in the U.S.’ Mountain States with another acquisition in Colorado. The company, alongside the Real Estate business within Goldman Sachs Asset Management, acquired Arista Uptown in Broomfield, Colo., for $95 million, excluding closing costs.
Kennedy Wilson has 20 percent ownership in the acquisition, which included a $44 million equity investment and a $53 million loan. According to Yardi Matrix data, the seller was Seagate Properties.
The 272-unit Arista Uptown offers studio, one- and two-bedroom floorplans ranging in size from 566 to 1,092 square feet, per Yardi Matrix data. Completed in 2012, the garden-style community also has a pool, clubhouse, fitness center and dog park. According to Kennedy Wilson, Arista Uptown is 95 percent occupied.
Kennedy Wilson and Goldman Sachs are planning to invest $4 million into Arista Uptown through a value-add asset management plan that includes renovating the unit interiors, refreshing the common areas and enhancing amenities. According to Kennedy Wilson, the unit renovations will include installing stainless steel appliances, two-tone paint, LED lighting and updated fixtures. Throughout the community, Kennedy Wilson will repaint the exteriors, resurface the elevated decks and conduct asphalt repairs. The new ownership is also planning to install a model unit for Arista Uptown.
Nick Bridges, managing director at Kennedy Wilson, said in prepared remarks that there’s a critical need for attainable, quality housing like Arista Uptown in the Denver metro area as residents are dealing with the high costs of living in cities.
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The community is also part of a 200-acre transit-oriented master planned development called Arista. When completed, the mixed-use development will include 2,000 residential units, 150,000 square feet of retail, and nearly 400,000 square feet of Class A office space. Arista will also be home to Broomfield’s UCHealth Campus and Children’s Hospital Colorado.
Bridges also said in prepared remarks that Kennedy Wilson sees a significant long-term opportunity in adding Arista Uptown to its Mountain West portfolio. He added in his prepared statement that the region was seeing sustained population growth, continued influx of tech companies and new developments. In September, Kennedy Wilson also acquired a 332-unit community in Denver for $134 million.