Kennedy Wilson Sees Long-Term Benefit from $95M Arista Buy

Kennedy Wilson and the real estate business within Goldman Sachs Asset Management recently acquired Arista Uptown, a 272-unit garden-style apartment community in Broomfield, CO, for $95 million excluding closing costs. Completed in 2012, the property is spread across 7 acres equidistant to Boulder and Denver within Arista, a 200-acre transit-oriented master-planned community on the U.S. 36 Creative Corridor.

Kennedy Wilson has a 20 percent ownership in the acquisition that included a total $44 million equity investment and a $53 million loan. Beginning immediately, the team will roll out a value-add asset management plan that includes investing $4 million to renovate unit interiors, refresh common areas and enhance amenities.

“Arista Uptown meets a critical need for attainable quality housing in the Denver metro area as residents feel the growing pressure of the high costs of living in city centers,” said Nick Bridges, managing director at Kennedy Wilson, who oversees multifamily investments in the region. “We see significant long-term opportunity in adding Arista Uptown to our growing Mountain West portfolio, driven by the region’s sustained population growth, continued influx of tech companies and new development that promises to attract even more jobs to the region. Broomfield and surrounding neighborhoods will continue to benefit as renters look to the suburbs for more space, relative affordability and easy commutes within a vibrant and growing market.”

Dave Martin and Brian Mooney of Northmarq’s Denver investment sales team listed and completed the sale of the Arista Uptown Apartments. Northmarq represented the seller, Seagate Colorado Partners LLC. Northmarq’s Denver debt/equity team of David Link and Jeff DeHarty provided $53 million in acquisition financing on behalf of the borrower through a long-standing life company relationship. The transaction was structured with a floating rate loan.

“The challenge for the team in this low cap rate environment is finding lenders willing to accept a lower than typical debt yield. In this case, we found a solution that matched borrowers needs with the appropriate life insurance company allowing the borrower to focus on and execute their business plan,” said Link.

Kennedy Wilson Fund VI also recently acquired Northtowne Summit in Reno for $66 million in an off-market transaction. The 15-acre garden-style apartment community includes 220 units.