BOZEMAN, MT – Global real estate investment firm Kennedy Wilson is expanding its presence in the mountain states with an investment in 11 acres in the Opportunity Zone that will be expanded into 268-unit landscaped gardens called The Oxbow in Bozeman, Montana.
Kennedy Wilson has committed $ 16 million to the company in exchange for a 51 percent stake in the development with equity and operating partner Roundhouse, a Boise-based real estate investment management company.
Construction work on The Oxbow, which is expected to be completed in 2023, is already underway. After completion, the new community will offer residents numerous amenities while promoting access to and connection to nature.
"Bozeman has grown to be one of the fastest growing cities in the country over the past few years and we are excited to expand Kennedy Wilson's multi-family presence in a region poised to continue its upward trend," said Nick Bridges, Managing Director at Kennedy Wilson, who oversees multi-family investments in the area. “Entering the Bozeman multi-family market is a natural next step for us as we continue to focus on acquisitions in regions that offer residents a high quality of life and relatively affordable cost of living – key factors that many individuals and employers seek as the flexibility of work increases. The Oxbow will offer the modern, comfort-rich lifestyle that outdoor-minded renters demand. "
Plans for The Oxbow include a mix of one-, two-, and three-bedroom apartments in a collection of low-rise buildings with clean, mountain modern designs that blend urban and natural amenities. The community will offer a variety of amenities, including a coffee shop, resort-style spa, fitness and yoga studio, as well as a communal kitchen, work space, and a dog wash station. When completed, the Oxbow is expected to contribute approximately $ 2.4 million of annual net operating income to Kennedy Wilson.
The acquisition follows several large home purchases by Kennedy Wilson in the Mountain States and reflects the continued focus on recycling capital from divestitures into high-quality apartment buildings in high-growth markets. The Oxbow will add 268 units to Kennedy Wilson's Mountain States portfolio, which now includes over 10,000 off-the-shelf and affordable units, including those in development. The Oxbow also adds to the overall expansion of Kennedy Wilson's 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.
Source: Kennedy Wilson