Kennedy Wilson Snags 2 in Salt Lake City for $93M

By IvyLee Rosario

Kennedy Wilson has acquired two multifamily communities in Salt Lake City for $93 million. The company purchased Santa Fe Apartments in Cottonwood Heights for $79.5 million and Creekview Apartments in Midvale for $13 million. 

For Santa Fe, Kennedy Wilson invested $21.5 million in equity and secured a 10-year fixed-rate loan of $59.1 million at 3.9 percent. For Creekview, the company invested $4.8 million in equity and secured an $8.6 million interest-only loan at L+1.6 percent. The equity for both investments came from proceeds generated from a reverse 1031 exchange. 

A Look at the Properties 

Santa Fe Apartments, Cottonwood Heights, Utah

Located at 1550 East Fort Union Blvd., the pet-friendly Santa Fe comprises 492 one- and two-bedroom floorplans, ranging from 700 to 900 square feet. Featuring 82 three-story buildings, the community offers both affordable and market rate units. Constructed in 1985, some interior features include walk-in closets, washer/dryer hookups, ceiling fans, private balcony/patios, stainless steel appliances, wood-style plank flooring, plush carpeting, linen closets and fireplaces. Residents have access to amenities such as: 

• fitness center
• playground
• clubhouse
• business center
• on-site storage
• racquetball, volleyball, tennis and basketball courts
• barbecue grills and picnic areas
• cyber cafe
• two spas
• 24-hour laundry facilities
• pool and hot tub
• mountain views 

Situated at 967 East South Union Ave., Creekview was constructed in two phased in 1986 and 2002. The 88-unit pet-friendly property offers one- and two-bedroom floorplans ranging from 700 to 1,200 square feet, across five, two-story buildings. Some interior features include spacious floorplans, private balcony/patios, wood-style flooring, plush carpeting, central air, washer/dryers, walk-in closets and ceiling fans. Common area amenities include:

• swimming pool 
• fitness center
• business center
• barbecue area
• 24-hour laundry facility 

Rapidly Growing Market 

Creekview Apartments, Midvale, Utah

Kennedy Wilson is planning on initiating its value-add asset management plan on both properties, investing a total of $5.3 million for interior unit renovations, upgrades to the sports court, fitness center, leasing center and other common area amenities. Both communities offer convenient access to Interstate 215, as well as grocers and retailers such as Whole Foods, Trader Joe’s, Walmart, Target and Bed, Bath & Beyond. 

“With its dynamic economic climate, well-run state government and highly educated workforce, Salt Lake City consistently emerges as a compelling market for real estate investment,” said Shem Streeter, managing director at Kennedy Wilson. “We continue to see strong interest from Millennials and many other groups of renters in easily accessible suburban locations based on relative affordability and proximity to both high paying employers and outdoor recreation.”

The company is focusing on expanding its multifamily portfolio to include institutional quality garden-style apartment communities in rapidly growing markets across the west. Kennedy Wilson now has a total of 1,396 units with a trailing 12-months NOI of $14 million.

Images courtesy of Kennedy Wilson