Kennedy Wilson has acquired three multifamily communities with 1,110 units in separate off-market transactions for $418 million, excluding closing costs. The properties include The Palms at Peccole Ranch in Las Vegas, La Privada in Scottsdale, Arizona, and San Miguel del Bosque in Albuquerque, New Mexico, expanding the global real estate investment company’s multifamily portfolio in rapidly growing Mountain West markets.
“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 equity in the three communities, which are expected to generate approximately $15 million of initial annual net operating income. The firm plans to implement a $19 million value-add asset management plan, including renovating almost two-thirds of the existing units, refreshing common areas, and enhancing amenities to further grow net operating income.
Kennedy Wilson’s Mountain West portfolio totals approximately 13,800 multifamily units, including those under development. These three communities also build on the company’s overall multifamily portfolio of approximately 37,600 units, including properties under construction.
