Source: Kennedy Wilson
DENVER, CO - Global real estate investment company Kennedy Wilson (NYSE:KW) has acquired Griffis Marston Lake, a wholly owned 332-unit suburban apartment community in Denver, Colorado for $134 million, excluding closing costs. Kennedy Wilson invested $62 million of equity and secured a 10-year, $76 million loan at a fixed-rate of 2.7 percent.
The purchase reflects Kennedy Wilson’s continued focus on recycling capital from recent asset sales and investing in high-quality multifamily properties in growth markets throughout the Mountain States region, where Kennedy Wilson has acquired nearly 1,900 units in the last 12 months and is developing approximately 1,000 more.
“Griffis Marston Lake is an ideal complement to Kennedy Wilson’s existing suburban multifamily portfolio and feeds into our growth strategy of expanding into high barrier to entry submarkets with leasing momentum, population growth and strong local economies,” said Nick Bridges, Managing Director at Kennedy Wilson, who oversees multifamily investments in the region. “Beyond the appealing location, the property offers the large unit layouts, amenities and relative affordability that we believe renters will continue to value.”
Built in 2002, Griffis Marston Lake is an institutional-quality, garden-style community that sits on 16 acres in the West Denver submarket of Littleton, with easy access to Denver’s major employment centers, a variety of shopping and restaurants, and convenient access to the outdoor recreational opportunities. The property is expected to add approximately $5 million of initial annual net operating income upon acquisition, which is projected to grow as Kennedy Wilson improves the renter experience on site. Renovation plans include investing approximately $6 million to upgrade unit interiors and enhance amenities and common areas.
The acquisition of Griffis Marston Lake contributes to the expansion of the company’s multifamily portfolio, which has grown from 30,000 units at year-end 2020 to approximately 32,000 units at the close of Q2 2021.