Kennedy Wilson Plans to Sink $7M Into Sombra del Oso

Kennedy Wilson recently acquired Sombra del Oso, a 344-unit apartment community in Albuquerque, for $65 million excluding closing costs. Kennedy Wilson invested $28 million of equity using proceeds generated from recent asset sales and secured a 10-year loan of $39 million at a fixed-rate of 2.85 percent. The property is expected to add approximately $3 million of initial annual net operating income upon acquisition, which is projected to grow as Kennedy Wilson plans to invest approximately $7 million to upgrade unit interiors, amenities and common areas.

“We first entered the Albuquerque multifamily market in 2019 to establish a foothold in a region that offers relative affordability, a strong job market and a great lifestyle for residents,” said Shem Streeter, senior managing director who leads acquisitions for Kennedy Wilson’s multifamily division. “We are encouraged by the region’s resilience this past year and believe there is significant upside in local multifamily as investment continues to flood into the area and residents seek out high-quality rental opportunities.”

Sombra del Oso is a two-story garden-style community on 16 acres in the Westside, six miles from downtown Albuquerque.