DENVER, CO – Global real estate investment firm Kennedy Wilson (NYSE: KW) has acquired Griffis Marston Lake, a wholly owned 332-unit suburban community in Denver, Colorado for $ 134 million, excluding closure charges. Kennedy Wilson invested $ 62 million in equity and secured a 10-year loan of $ 76 million at a fixed rate of 2.7 percent.
The purchase reflects Kennedy Wilson's continued focus on recycling capital from recent home sales and investing in high quality apartment buildings in emerging markets across the Mountain States region, where Kennedy Wilson has acquired nearly 1,900 units in the past 12 months and is developing about 1,000 more.
"Griffis Marston Lake is an ideal addition to Kennedy Wilson's existing suburban multi-family portfolio and contributes to our growth strategy of expanding into high-barrier submarkets with rental dynamics, population growth and strong local economies," said Nick Bridges, Managing Director at Kennedy Wilson. oversees multi-family investments in the region. "In addition to the attractive location, the property offers large floor plans, amenities and relative affordability that we believe tenants will continue to appreciate."
Griffis Marston Lake was built in 2002 and is institutional grade landscaped grounds set in 16 acres in the West Denver submarket of Littleton for Outdoor Recreation. The property is expected to add approximately $ 5 million in net annual operating income after the acquisition, which is expected to grow as Kennedy Wilson improves the on-site tenant experience. The renovation plans include approximately $ 6 million in investments to upgrade the interiors of the units and improve amenities and common areas.
The acquisition of Griffis Marston Lake helps expand the company's multi-family portfolio, which has grown from 30,000 units at the end of 2020 to approximately 32,000 units at the end of the second quarter of 2021.
Source: Kennedy Wilson