The Reedhouse multifamily community in Boise, ID.

BOISE, ID—Real estate investment firm Kennedy Wilson has added a 188-unit multifamily community here to its portfolio in an off-market transaction valued at $24 million.

The Beverly Hills, CA-based firm purchased the Cottonwoods Apartments development and has plans to rename the property Reedhouse. 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 company states that the off-market purchase reflects its continued focus on recycling capital into properties with value-add components in high growth markets.

Kennedy Wilson says it will begin immediately a large-scale renovation and rebranding of the property that will total more than $6 million in additional investment. Planned improvements include upgrades to the unit interiors, clubhouse, fitness center and pool, and addressing deferred maintenance projects. Upon completion the property, which was built in 1986, will be renamed Reedhouse.

“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.”

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 1,184-unit 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, ID. Bridges adds that the firm hopes to grow its portfolio to 2,000 units in the Boise area by the end of 2020 through new acquisitions and development.

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 via off-market transactions, acquired directly from private sellers, the company notes.