Kennedy Wilson Buys Portfolio for $198M

The purchase includes three garden-style properties in Colorado and Arizona totaling 880 units.
Tempe Station. Image courtesy of Kennedy Wilson

Kennedy Wilson has acquired a portfolio of three multifamily properties across a pair of U.S. western states. Comprising a total of 880 residential units, the portfolio changed hands in a $198 million transaction.

The three apartment communities are Rockrimmon, a 260-unit Colorado Springs, Colo., property; RockVue, a 220-unit Broomfield, Colo., property; and Tempe Station, a 400-unit property in Tempe, Ariz.

The communities enlarge Kennedy Wilson’s multifamily portfolio focused on institutional-quality, garden-style rental communities in swiftly-expanding western U.S. markets. The value-add strategy to be pursued by Kennedy Wilson calls for adding and improving the properties’ common-area amenities, as well as upgrading apartment interiors.

Conducting inspections

“Conducting our due diligence of the portfolio presented new challenge as we pursued these acquisitions through the current health crisis,” Shem Streeter, Kennedy Wilson senior managing director, told Multi-Housing News. Streeter leads acquisitions for Kennedy Wilson’s multifamily division.

“Since we began the process, we were hyper focused on following the best protocols to ensure the safety of our team as well as the residents of the apartment communities as we toured them and conducted our normal inspections. These new protocols added a layer of complication. That said, despite travel restrictions and fewer face-to-face meetings than we are used to, our relationship with the seller and the other parties involved made this a relatively smooth transaction for us over the past several months.”

In July, the firm wrapped up the third phase of the 845-unit Clancy Quay, Ireland’s largest apartment community

Expanding footprint

The company’s multifamily portfolio favors geographies with robust higher education systems and potential for substantial job growth, according to Streeter. The assets were acquired by Kennedy Wilson and an array of investment vehicles managed by Kennedy Wilson. Wholly-owned Rockrimmon was acquired for $66 million, representing a $28 million equity investment by Kennedy Wilson. RockVue and Tempe Station are held in the company’s co-investment portfolio, with Kennedy Wilson holding an average ownership of 10 percent across those two assets. In total, Kennedy Wilson and its equity partners invested $87 million of equity in the portfolio, including closing costs.

Kennedy Wilson’s expanding multifamily footprint in the Mountain states now numbers approximately 9,400 multifamily units, including those under development.