Kennedy Wilson has continued its expansion into the U.S. Mountain States by acquiring the majority stake of a 268-unit community that’s under construction in Bozeman, Mont.
The company has invested $16 million into The Oxbow, the residential project being undertaken by the Boise, Idaho-based management company Roundhouse. Roundhouse, who will retain the remaining 49 percent ownership, broke ground on The Oxbow in late 2020 and is expected to complete the community in 2023.
Once completed, The Oxbow will offer one-, two- and three-bedroom units that average 900 square feet and will be spread throughout several low-rise buildings in a garden-style layout. The community’s amenities will include a coffee shop, spa, fitness studio, community kitchen dog wash station and working spaces. Roundhouse also has plans for a second phase of The Oxbow that will include 132 units, which Kennedy Wilson is expecting to also participate in.
The project is being built within an 11-acre opportunity zone site that’s located across from The Market at Ferguson Farm, a high-end shopping center that opened in 2018. The Oxbow is also located 10 minutes away from downtown Bozeman.
NEW PEAK FOR MOUNTAIN STATE PORTFOLIO
Nick Bridges, managing director at Kennedy Wilson, said in prepared remarks that Bozeman is one of the fastest growing cities in the country over the last several years. Capitalizing on the growth, The Oxbow is expected to generate approximately $2.4 million annual net operating income for Kennedy Wilson once completed, according to the company.
Bridges, who also oversees Kennedy Wilson’s multifamily investments in the region, added in his prepared statement that the company will also continue to focus on acquisitions in regions that offer a high quality of life alongside a relatively affordable cost of living. With The Oxbow, Kennedy Wilson’s portfolio of projects completed and those under construction in the Mountain States has surpassed 10,000 market-rate and affordable units.
Earlier this month, the company acquired a 344-unit community in Albuquerque, N.M. for $65 million. The New Mexico purchase came on the heels of Kennedy Wilson acquiring three communities in the Boise, Idaho region for $143 million.