Kennedy Wilson Closes 2021 With $155M Las Vegas Apartment Acquisition
The firm acquired more than 5,000 apartment units last year, growing its portfolio to 35,000 units.
In its final deal of the year, Kennedy Wilson has acquired 3001 Park, a 528-unit apartment building in Henderson, Nevada, for $155 million. The deal caps off a significant buying spree for the firm last year, which saw it buy more than 5,000 apartment units across the country. With this purchase the company now has more than 35,000 units in its apartment portfolio.
Kennedy Wilson purchased the garden-style Henderson apartment building with $56 million in equity and it secured a $102 million loan. As is, the property will generate $8 million of annual revenue and $6 million of annual net operating income. Kennedy Wilson also plans to execute a capital improvements over the next four years to drive additional value to generate $12 million of annual revenue and $9 million of annual net operating income.
According to Kurt Zech, President of Kennedy Wilson’s multifamily group, the property is illustrative of the company’s bullishness on the Las Vegas market. In addition, the company made a strategic decision to focus suburban markets outside of growing metropolitan. Henderson is such a submarket, along with Boise, Seattle, Portland, Salt Lake City, Denver and Albuquerque, where the company has also made purchases in the last year.
In August, for example, Kennedy Wilson’s Fund VI acquired Autumn Ridge, a garden-style apartment community in the Citrus Heights neighborhood of Sacramento, for $120 million. The fund plans to invest an additional $9 million to upgrade the property including renovations to unit interiors, common spaces and amenities. At the time, the firm’s president Mary Ricks said that Kennedy Wilson was attracted to the property because of recent growth in the Sacramento market, which had 6.4% rent growth in 2021.
The firm also has an active development pipeline with more than 4,500 units under construction, including plans to develop a mixed-residential community in Camarillo, California. The real estate company has signed a 32-acre ground lease with California State University Channel Islands for the development. Most of the company’s current construction pipeline will deliver by 2023.
3001 Park has a mix of one-, two- and three-bedroom floorplans, and it was 95% occupied at the time of the sale.