Kennedy Wilson Expects $5M in Annual NOI After Griffis Buy

Kennedy Wilson recently acquired Griffis Marston Lake, a 332-unit suburban garden-style community in the West Denver submarket of Littleton, 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 property is expected to add $5 million of initial annual net operating income upon acquisition, which is projected to grow as Kennedy Wilson improves the on-site renter experience. Renovation plans include $6 million for upgrading unit interiors, and enhancing amenities and common areas.

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. It is in this region that Kennedy Wilson has acquired 1,900 units in the last 12 months and is developing 1,000 more.

This acquisition contributes to the expansion of the company’s multifamily portfolio, which has grown from 30,000 units at year-end 2020 to 32,000 units at the close of second quarter 2021.

“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.”

The institutional-quality asset was built in 2002 on 16 acres.