Kennedy Wilson Buys Denver Apartments for $134M
The firm acquired Griffis Marston Lake, a 332-unit apartment complex in Denver, bringing the firm’s total apartment portfolio to 32,000 units.
Kennedy Wilson has expanded its Denver apartment portfolio with the purchase of Griffis Marston Lake, a 332-unit apartment complex, for $134 million. The purchase brings the firm’s total multifamily portfolio to 32,000 units.
Kennedy Wilson purchased the property with $62 million of equity and a 10-year, $76 million loan at a fixed-rate of 2.7%. The $134 million purchase price does not include closing costs. The firm also plans to invest an additional $6 million to upgrade the interiors and common area amenities. Immediately following the transaction, the property is expected to add $5 million of initial net operating income.
Kennedy Wilson is bullish on the Mountain States region. In the last 12 months, it has acquired 1,900 units, including the $200 million purchase of an 880-unit garden-style apartment portfolio it purchased late last year. The firm also has another 1,000 units under construction. To complete the purchase of Griffis Marston Lake, Kennedy Wilson recycled capital from other asset sales in the region.
The market has been rife with major apartment transactions. In June, Blackstone Group acquired a class A, 206-unit multifamily community in Denver for $65.9 million. The firm purchased the property from Indianapolis-based Watermark Residential, a wholly owned affiliate of Thompson Thrift. The same month, Nuveen Real Estate sold the 1,184-unit, upscale apartment community, Palomino Park Apartments, in the Denver suburb of Highlands Ranch for $435 million. The complex was purchased by an undisclosed buyer. The purchase represents the largest single-asset apartment transaction in Colorado’s history.
For Kennedy Wilson, the Griffis Marston Lake purchase aligns with the firm’s investment strategy in the market, to acquire properties in high-barrier-to-entry neighborhoods with leasing momentum, population growth and a strong local economy.
Griffis Marston Lake is a garden-style apartment community built in 2002 on 16 acres. It is near shopping and restaurants, and convenient access to the outdoor recreational opportunities.