Kennedy Wilson Closes Off-Market Acquisition of 344-Unit Sombra del Oso Residence Neighborhood for $65 Million in Albuquerque

0
916
Kennedy Wilson Closes Off-Market Acquisition of 344-Unit Sombra del Oso Apartment Community for $65 Million in Albuquerque

BEVERLY HILLS, CA – Global real estate investment firm Kennedy Wilson (NYSE: KW) has acquired Sombra del Oso, a wholly owned 344-unit apartment complex in Albuquerque, New Mexico for $ 65 million (excluding closing fees). Kennedy Wilson invested $ 28 million in equity using proceeds from recent asset sales and secured a 10-year loan of $ 39 million at a fixed rate of 2.85%.

The purchase follows several large western home deals that have added more than 2,000 units to Kennedy Wilson's growing portfolio in the past six months, with a focus on recycling capital into high-quality real estate in high-growth markets.

“We entered the Albuquerque multi-family market for the first time in 2019 to gain a foothold in a region that offers relative affordability, a strong job market and a great lifestyle for residents, and we are excited to expand our presence with the acquisition of To further expand Sombra del Oso. "Said Senior Managing Director Shem Streeter, who leads the acquisitions for Kennedy Wilson's multi-family division. "We are encouraged by the resilience of the region over the past year and believe that there are significant benefits to local apartment buildings as investment continues to flow into the area and residents seek quality rental opportunities."

Sombra del Oso is a two-story, garden-style community set in 16 acres on the west side of Albuquerque, six miles from downtown and surrounded by a variety of shopping and dining options. The property is currently expected to add approximately $ 3 million in net annual operating income after the acquisition, which is expected to grow as Kennedy Wilson plans to spend approximately $ 7 million in modernizing the interior, facilities and common areas Place to invest.

The acquisition of Sombra del Oso adds to a dramatic increase in recent transactional activity at Kennedy Wilson, as well as an expansion of its multi-family portfolio, which has grown from 30,000 units at the end of 2020 to over 32,000 units by the end of the second quarter of 2021. Sombra del Oso marks the second multi-family acquisition by Kennedy Wilson in the Albuquerque market after purchasing Skystone in 2019.


Source: Kennedy Wilson

LEAVE A REPLY

Please enter your comment!
Please enter your name here