BEVERLY HILLS, Calif.--(BUSINESS WIRE)--Global real estate investment company Kennedy Wilson (NYSE:KW) has acquired Alpine Meadows, a 222-unit wholly owned apartment community in the Salt Lake City, Utah region, for $49 million.
Kennedy Wilson invested $20 million of equity in Alpine Meadows with a corresponding 10-year, $29 million loan at 4.28%. The property was acquired through a 1031 exchange with profits generated from the recent sale of Bay Village, a 50% owned 260-unit apartment community in Vallejo, California, that was built a decade before Alpine Meadows. Since 2010, Kennedy Wilson increased net operating income at Bay Village by 121%, resulting in gain on sale of $20 million to Kennedy Wilson.
“Salt Lake City is experiencing some of the most significant population and wage growth in the country as well as a boom in commercial and infrastructure development that is fueling local investment activity,” said Shem Streeter, Managing Director at Kennedy Wilson. “We see a compelling opportunity to add value to Alpine Meadows and to bring it in line with Salt Lake City’s high-quality housing options that appeal to employees in the ‘Silicon Slopes,’ students, and many others who are moving to the region for lifestyle reasons.”
Located just 15 miles from Downtown Salt Lake City, Alpine Meadows is a low-density, garden style, two-story walk-up apartment community with one-, two- and three-bedroom units in Sandy, Utah. The area is home to major tech companies including Adobe, EMC2, Microsoft, eBay, Intel, Overstock and Backcountry.com, as well as several local ski resorts and regional retail hubs.
Beginning immediately, Kennedy Wilson will implement a $3 million upgrade to refresh both unit interiors and the property’s common amenities that currently include a clubhouse, fitness center, business center, dog park, basketball court, playground and barbecue area.
The acquisition furthers Kennedy Wilson’s strategy of focusing investment activity in high-growth markets and reflects the company’s continued confidence in the Salt Lake City market. Kennedy Wilson’s multifamily portfolio has grown to 2,387 units in Salt Lake City, including Foothill Place, Sandpiper Apartments, Santa Fe Apartments and Cottonwood Heights, since first investing in the region in 2012.
About Kennedy Wilson
Kennedy Wilson (NYSE:KW) is a global real estate investment company. We own, operate, and invest in real estate both on our own and through our investment management platform. We focus on multifamily and office properties located in the Western U.S., UK, and Ireland.
For further information on Kennedy Wilson, please visit: www.kennedywilson.com.
Special Note Regarding Forward-Looking Statements
Statements in this press release that are not historical facts are “forward-looking statements” within the meaning of U.S. federal securities laws. These forward-looking statements are estimates that reflect our management’s current expectations, are based on assumptions that may prove to be inaccurate and involve known and unknown risks. Accordingly, our actual results or performance may differ materially and adversely from the results or performance expressed or implied by these forward-looking statements, including for reasons that are beyond our control. For example, we may not be able to maintain our current acquisition or disposition pace or identify future properties to acquire on terms we consider attractive, and our current property portfolio may not perform as expected. Accordingly, you should not unduly rely on these statements, which speak only as of the date of this press release. We assume no duty to update the forward-looking statements, except as may be required by law.
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