Kennedy Wilson has acquired three multifamily communities with 880 units in Arizona and Colorado. The assets were purchased by the global real estate investment company and various investment vehicles it manages in an off-market transaction for $198 million.
The three communities expand Kennedy Wilson’s growing presence in the Mountain States, where the firm has approximately 9,400 multifamily units, including those under construction.Kennedy Wilson has a global multifamily portfolio of 30,870 units, including units under construction.
The assets acquired include the 260-unit Rockrimmon in Colorado Springs, Colorado; the 220-unit RockVue community in Broomfield, Colorado; and the 400-unit Tempe Station in Tempe, Arizona. Kennedy Wilson’s value-add plans include adding and enhancing amenities as well as updating unit interiors.
“We are pleased to close on these three high-quality, very well-located properties and to build on our multifamily portfolio that favors geographies with strong university and education systems as well as growth opportunities,” said senior managing director Shem Streeter, who leads acquisitions for the firm’s multifamily division. “We continue to be optimistic about the Mountain State markets, where we have seen tremendous results since we began investing there a decade ago and where we foresee continued job and population growth over the long term. We also are excited to expand our presence in Tempe, where the vibrant business community, relative affordability, and lifestyle offerings will help support a strong multifamily market.”
In total, Kennedy Wilson and its partners invested $87 million of equity in the portfolio, including closing costs. Rockrimmon was acquired for $66 million, representing a $28 million equity investment by Kennedy Wilson. The RockVue and Tempe Station communities are held in the firm’s co-investment portfolio, and Kennedy Wilson has an average ownership of 10% across the two assets.
