MERIDIAN AND BOISE, IDAHO — Kennedy Wilson Holdings Inc. (NYSE: KW) has purchased three apartment communities totaling 640 units and a multifamily development site that is fully entitled for 240 units in the Boise metro area for $143 million.
The three multifamily communities include The Lofts at Ten Mile, Jasper Apartments and Towne Square. The new owner plans to implement value-add programs at the existing communities and to complete construction at the Dovetail development site, which is located in an Opportunity Zone, by 2023. Construction costs for that project are estimated at about $60 million.
The Lofts at Ten Mile, located west of downtown Boise in Meridian, features one- and two-bedroom units and amenities such as a pool, fitness center, business center, media lounge and outdoor grilling stations. Jasper Apartments, also in Meridian, offers one-, two- and three-bedroom apartments and amenities such as a resident lounge, pool, fitness center and private study rooms. Towne Square, located in Boise, includes one-, two- and three-bedroom floor plans and a similar suite of amenities.
Kennedy Wilson has an average ownership stake of 95 percent in these four properties, which were acquired in off-market trades, and has invested $68 million of equity into them. The global investment firm, which is based in Beverly Hills, acquired the assets in partnership with Boise-based investment firm Roundhouse.
The partnership between Kennedy Wilson and Roundhouse also recently completed construction of The Clara, a 277-unit project in Eagle, Idaho. Including properties under development, Kennedy Wilson’s multifamily footprint in the Boise area now totals approximately 2,500 market-rate units.
“We anticipate continued growth in population and employment in the Boise area as individuals and employers seek relative housing affordability, lower taxes, a friendlier business environment, better infrastructure and access to the outdoors,” says Nick Bridges, Kennedy Wilson’s managing director who oversees multifamily investments in the region. “These trends, which existed for years leading up to the pandemic, were accelerated over the last year.”
According to the latest data from the U.S. Census Bureau, the population of the Boise metropolitan statistical area (MSA) is approximately 230,000, up from about 205,000 in 2010.
Kennedy Wilson’s stock price opened at $19.86 per share on Monday, June 21, up from $15.75 per share a year ago.
— Taylor Williams