Kennedy Wilson Acquires 188-Unit Boise, Idaho Apartment Community in Off-Market Transaction for $24 Million
Company’s portfolio now totals 1,184 units in rapidly growing
Boise apartment market, with a short-term target of 2,000 units
BEVERLY HILLS, Calif.--(BUSINESS WIRE)--
Global real estate investment company Kennedy Wilson (NYSE:KW) has
acquired Cottonwoods Apartments, a wholly-owned 188-unit apartment
community in Boise, Idaho for $24 million. Kennedy Wilson invested
approximately $11 million of equity (including closing costs) and
secured a $14 million loan from Freddie Mac at a fixed rate of 4.33% for
10 years. The off-market purchase reflects a continued focus on
recycling capital into properties with value-add components in high
growth markets.
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Reedhouse in Boise, Idaho (Photo: Business Wire)
“Boise has emerged as one of the fastest growing metro areas in the
United States and one of the top-performing markets in our multifamily
portfolio. New residents are drawn to Boise by the strong local
education system, high-quality employment opportunities, relative
housing affordability, lower taxes, job growth and lifestyle perks,”
said Nick Bridges, Managing Director at Kennedy Wilson. “With
Cottonwoods, we have the opportunity to take a very well-located
property and add significant value through a top-to-bottom renovation
program that will bring the property in line with the best multifamily
properties in the area.”
Beginning immediately, Kennedy Wilson will initiate a large-scale
renovation and rebranding of the property. More than $6 million will be
invested to upgrade the unit interiors, improve the clubhouse, fitness
center and pool, and address deferred maintenance projects. This will be
most significant reinvestment into the property since it was built in
1986 and upon completion the apartments will be renamed “Reedhouse” as a
tribute to the rich history of the site.
The apartments are located in Southeast Boise between a private lake and
the Boise River, providing most of the units with waterfront views. The
property is just minutes from some of the best employers in Boise,
including Albertsons Companies, Micron, and the JR Simplot Company, as
well as Boise State University and Downtown. Residents have direct
access to public transportation, lush parks and walking/biking paths,
including the 25-mile Boise River Greenbelt that follows the river
through the heart of the city.
“We are excited about the potential to find and create value within the
Boise multifamily market and plan to continue exploring opportunities to
expand our presence there,” added Bridges. “With nearly 1,200 units
owned currently, we hope to grow to 2,000 units in the Boise area by the
end of 2020 through new acquisitions and development.”
Over the next several years, Kennedy Wilson has plans to develop 166
multifamily units on seven acres of land directly adjacent to the
properties in its Boise portfolio, as well as 278 units on a
fully-entitled, 22-acre site on the Boise River greenbelt in the
high-income submarket of Eagle, Idaho.
The acquisition of Cottonwoods is the fifth significant purchase for
Kennedy Wilson in Boise since the company started investing in the
region in 2014. Kennedy Wilson’s other assets include Whitewater Park
Apartments with 324 units, Edgewater with 300 units, River Pointe with
204 units and Rosewood Apartments with 168 units. All of the Boise
multifamily properties were secured through off-market transactions,
acquired directly from private sellers.
About Kennedy Wilson
Kennedy Wilson (NYSE:KW) is a global real estate investment company. We
own, operate, and invest in real estate both on our own and through our
investment management platform. We focus on multifamily and office
properties located in the Western U.S., UK, and Ireland.
For further information on Kennedy Wilson, please visit: www.kennedywilson.com.
Special Note Regarding Forward-Looking Statements
Statements in this press release that are not historical facts are
“forward-looking statements” within the meaning of U.S. federal
securities laws. These forward-looking statements are estimates that
reflect our management’s current expectations, are based on assumptions
that may prove to be inaccurate and involve known and unknown risks.
Accordingly, our actual results or performance may differ materially and
adversely from the results or performance expressed or implied by these
forward-looking statements, including for reasons that are beyond our
control. For example, we may not be able to maintain our current
acquisition or disposition pace or identify future properties to acquire
on terms we consider attractive, and our current property portfolio may
not perform as expected. Accordingly, you should not unduly rely on
these statements, which speak only as of the date of this press release.
We assume no duty to update the forward-looking statements, except as
may be required by law.
KW-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20181121005017/en/
Investors
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Director of Investor
Relations
+1 (310) 887-3431
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Media
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Director of Public Relations
+1
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Source: Kennedy Wilson