Kennedy Wilson has acquired three wholly owned multifamily communities in the Mountain West region in three separate off-market transactions for $418 million.
The company acquired Palms at Peccole Ranch in Las Vegas, Nevada; La Privada in Scottsdale, Arizona and San Miguel del Bosque in Albuquerque, New Mexico.
”The acquisitions contribute 1,110 units to Kennedy Wilson’s growing multifamily presence in the Mountain West, which now totals approximately 13,800 multifamily units, including those under development,” said the company in a press release.
“We continue to be bullish on our outlook for the Mountain West, as renters explore new areas where their budgets stretch further and they can find an outdoor-oriented lifestyle in relative proximity to jobs, restaurants, and amenities of some exciting, established markets that still offer small-town quality of life,” said Senior Managing Director Shem Streeter, who leads acquisitions for Kennedy Wilson’s U.S. multifamily division.
“We are excited to bring these high-quality communities into our growing multifamily business as we continue upgrading the quality of our portfolio and focusing on markets that we believe have a long runway for growth.”
Kennedy Wilson invested $255 million of total equity in the three communities, which are expected to generate approximately $15 million of initial annual net operating income to Kennedy Wilson.
”The communities currently have a blended loss to lease of approximately 15% within markets that are anticipated to experience further multifamily rent growth. Beginning immediately, Kennedy Wilson will implement a $19 million value-add asset management plan, including renovating over 65% of the existing units, refreshing common areas, and enhancing amenities to further grow NOI,” the company said.