Washington multifamily portfolio now totals over 10,000 units
BEVERLY HILLS, Calif.-Global real estate investment company Kennedy Wilson (NYSE:KW) (“KW”) has acquired Atlas, a wholly-owned 343-unit apartment community in Issaquah, WA, for $135 million ($393,586 per unit). KW invested $52 million of equity, and secured a 10-year interest only loan for $84 million at a fixed-rate of 3.86%. The purchase reflects KW’s continued confidence in the Washington market, where the multifamily group’s portfolio has grown to over 10,000 units.
Atlas was one of four properties acquired through a 1031 exchange with proceeds generated from the recent sale of Summer House, a wholly-owned 615-unit apartment community in Alameda, CA. Constructed in 2016, Atlas is 50 years newer than Summer House and incorporates contemporary architecture as well as a highly sought after outdoor-oriented lifestyle just minutes from the job centers of the Seattle metro area.
“Our company is focused on pursuing attractive investment opportunities across the Seattle metro area, and we have identified Issaquah as a particularly desirable eastside submarket with significant potential for continued growth,” said Shem Streeter, Managing Director at KW. “Atlas is a top-tier property uniquely set in an infill location and it is a fantastic addition to our portfolio. It furthers our strategy of upgrading the overall quality of our assets while expanding our presence in markets with limited new supply.”
Atlas includes a mix of studio, one, and two-bedroom units ranging from 513 square feet to 1,239 square feet across five mid-rise buildings. The brand-new community includes a fitness center and exercise studio, co-working pods as well as lounge areas, a fire pit and a large furnished outdoor courtyard with seating and BBQ grills.
Located at the base of the Cascade mountain range, Atlas offers easy access to hundreds of acres of parks, hiking and biking trails and a 512-acre waterfront state park within a region expected to see significant job growth over the next decade. The adjacent I-90 corridor is home to many major employers including Microsoft, Siemens, T-Mobile and Costco, and Atlas is situated in a highly walkable location with many shopping and dining options just blocks from the property. Across the street from Atlas, the Issaquah Commons shopping center has recently opened a new Trader Joe’s, Starbucks, Safeway and Target.
The acquisition of Atlas is the second significant purchase for KW in Issaquah in recent months. The team secured 90 East, a 573,000 square-foot office campus in Issaquah this summer, and within four months of taking ownership, the KW team negotiated a lease extension on 177,000 square feet with Costco. The lease was extended an additional seven years beyond the existing term, securing long-term stability for this well-located office asset.
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 commercial properties located in the Western U.S., UK, Ireland, Spain, Italy and Japan. To complement our investment business, the Company also provides real estate services primarily to financial services clients. For further information on Kennedy Wilson, please visit: www.kennedywilson.com.