Kennedy Wilson Purchases 450-Unit Apartment Community in Salt Lake City
Company's investments in Greater Salt Lake City now total $139 million,
including 816 multifamily units and more than 325,000 sf of retail
BEVERLY HILLS, Calif. -- May 1, 2013
International real estate investment and services firm Kennedy Wilson (NYSE:
KW) today announced the acquisition of Foothill Place, a 450-unit apartment
community in Salt Lake City, Utah. The acquisition brings the company’s total
investment in the area to $139 million, including 816 multifamily units and
325,832 square feet of retail properties.
William McMorrow, chairman and CEO of Kennedy Wilson, commented, “Salt Lake
City is a great market for the company to invest in because it’s one of the
few metro areas in the country where employment is now exceeding pre-recession
levels. Also, the area’s population is increasing at about 1.7% per year, so
we’re confident in the opportunity for further growth there. In fact, average
apartment rental rates have risen approximately 4% year over year while
vacancy has dropped to about 5%.”
The company purchased Foothill Place for $61.8 million, investing $15 million
of equity in the transaction and financing the purchase with a $49.7 million,
10-year Freddie Mac loan at 3.58%, fixed, through Berkeley Point.
“This asset is our second multifamily acquisition in the Salt Lake City area
in the last six months, where we purchased Sandpiper Apartments in November of
last year,” said Bob Hart, president of KW Multifamily Management Group.
“Foothill and Sandpiper are excellent examples of Kennedy Wilson’s value-add
repositioning strategy in markets that have stable job growth with high rental
Foothill Place is located in East Valley, close to the University of Utah and
to Park City. The property, built in 1974, consists of 10 two- and three-story
buildings situated on 18 acres. Amenities include two swimming pools, a
volleyball court, dog park, rock climbing boulder and a clubhouse/leasing
center with fitness center. Kennedy Wilson plans to add washers and dryers in
addition to renovating the majority of the units and adding selected upgrades
to the property’s common areas.
Kennedy Wilson, together with its institutional partners, has acquired $1.1
billion of real estate and real estate related debt since the beginning of
this year. This total includes 1,253 apartment units in the Western U.S., 1.1
million square feet of commercial assets in the Western U.S. and in the U.K.
and $770 million in unpaid principal balance of loans secured by real estate,
primarily in the U.K. The company’s multifamily portfolio in the U.S., Ireland
and Japan now totals 15,402 units.
About Kennedy Wilson
Founded in 1977, Kennedy Wilson is an international real estate investment and
services company headquartered in Beverly Hills, CA with 24 offices in the
U.S., U.K., Ireland, Spain and Japan. The company offers a comprehensive array
of real estate services including auction, conventional sales, property
services, research and investment management. Through its fund management and
separate account businesses, Kennedy Wilson is a strategic investor of real
estate investments in the U.S., U.K., Ireland and Japan. For further
information on Kennedy Wilson, please visit www.kennedywilson.com.
VP of Corporate Communication
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