Kennedy Wilson Buys Denver Apartments for $134M
- Sep 30, 2021
Kennedy Wilson has furthered its investment into the U.S. Mountain States region after acquiring a 332-unit community in Denver. According to Yardi Matrix data, Griffith/Blessing sold the community to Kennedy Wilson.
The company acquired Griffis Marston Lake for $134 million, excluding closing costs, by investing $62 million of equity and securing $76 million in financing. The 10-year loan from Fannie Mae was secured at a fixed rate of 2.7 percent.
The garden-style community at 4601 S. Balsam Way was built in 2002 and offers one-, two- and three-bedroom units that range in size from 662 to 1,449 square feet. The units were built with Nest thermostats, and in-home washer and dryers while select units have a fireplace, patio or balcony, walk-in closets, USB outlets and private yards.
The community’s amenities include a fitness center, pet wash, business center, coffee and tea bar, bike storage and package lockers.
According to Kennedy Wilson, the community will add approximately $5 million of initial annual net operating income, which is expected to grow after the company completes upgrades. Kennedy Wilson is planning to invest approximately $6 million into renovations towards unit interiors, amenities and common areas.
The renovation plan will include installing cabinet fronts, stainless steel appliances, vinyl flooring, LED lighting, two-tone paint and updating fixtures throughout the units that haven’t been recently renovated.
STRATEGY FOR THE MOUNTAIN STATES
Nick Bridges, managing director at Kennedy Wilson, said in prepared remarks that the acquisition of Griffis Marston Lake was part of the company’s strategy to recycle capital from recent asset sales and invest it into high-quality multifamily properties in growth markets throughout the U.S. Mountain States region.
Following its strategy, Kennedy Wilson recently acquired the majority stake of a 268-unit project that’s under construction in Bozeman, Mont., for $16 million. In July, the company also purchased a 344-unit apartment community in Albuquerque, N.M., for $65 million, excluding closing costs.
Kennedy Wilson’s portfolio in the Mountain States grew nearly 1,900 units in the last 12 months, with the company also developing approximately 1,000 more units. Overall, Kennedy Wilson grew its multifamily portfolio from 30,000 units at year-end 2020 to 32,000 units at the close of the second quarter of 2021.