BEVERLY HILLS, CA – Kennedy Wilson, a global real estate investment company, has in separate transactions three existing residential communities totaling 640 units for $ 143 million and one lot in the Opportunity Zone entitled to 240 units in the Boise, Idaho area , acquired. The three existing shared apartments include a wholly owned asset, The Lofts at Ten Mile, and two shared apartments, Jasper and Towne Square, which were acquired with Boise-based real estate investment company Roundhouse. Kennedy Wilson and Roundhouse also acquired the Dovetail development site, which is expected to be completed in 2023.
Kennedy Wilson holds an average 95% interest in these four investments and has invested $ 68 million in equity in the properties using either fixed-rate or floating-rate financing that are hedged against long-term rate hikes.
The over-the-counter purchases reflect an ongoing focus on recycling equity from sales into high-quality apartment buildings across the mountain states, a priority for Kennedy Wilson since his first investment in the region in 2012.
"We expect continued population and employment growth in the Boise area as individuals and employers alike seek relative affordable housing, lower taxes, a friendlier business environment, better infrastructure and access to nature," said Nick Bridges, Managing Director at Kennedy Wilson, who oversees multi-family investments in the area. "These trends, which had existed for years before the pandemic, accelerated last year as parts of the two largest populations, baby boomers and millennials, sought better quality of life in the mountain states where Kennedy Wilson lived." Was an earlier Investor."
Kennedy Wilson's asset management plans include adding and upgrading amenities and upgrading the interiors of units in existing communities. In addition, Kennedy Wilson and his partner will develop a new multi-family community of 240 units on property in the Opportunity Zone in Meridian, Idaho, catering to residents seeking a suburban, outdoor-oriented lifestyle with an emphasis on sustainability. The development is expected to cost $ 60 million in construction costs, including an estimated $ 19 million equity commitment from Kennedy Wilson over the life of the development.
The four properties will add 880 units to Kennedy Wilson's growing multi-family presence in the mountain states and are expected to add $ 9.4 million in net operating income, including $ 3 million in net operating income from the Opportunity Zone development when completed. Kennedy Wilson is now the largest conventional block of flats owner in the greater Boise area, with a stake in approximately 2,500 commercial apartment buildings, including those under development. All properties were either developed through a build-to-hold business plan or secured through off-market transactions, acquired directly from private sellers.
Kennedy Wilson and partner Roundhouse recently completed construction on The Clara, a new 277-unit apartment building in Eagle, Idaho, and the community is close to full rental months ahead of business plans.
