Apartments, offices, industrial warehouses, retail centers are all on the hit list of institutional investors looking to dip their toes or expand their footprints in the Puget Sound property market. Beverly Hills, Calif.-based Kennedy Wilson just expanded its portfolio across the western United States, and one of the properties is the Pacifica Apartment complex located at 4275 S Pine St. in Tacoma, for which Kennedy Wilson paid $41 million, or roughly $231,638 per unit. The seller was Pleasanton, Calif.-based Green Leaf Partners.
The 7-story Pacifica is one of the newer premier luxury apartments in Tacoma—it was completed in 2013—and it offers a number of modern amenities such as a resort-style swimming pool and a clubhouse. The apartments feature full-size washers and dryers, stainless steel appliance packages, walk-in closets, granite countertops and two custom-designed interior finishes from which to choose, according to the property’s web site. The Pacifica is also proximate to shopping, dining, entertainment, Sound Transit, freeways and is just minutes away from Joint Base Lewis McChord.
The purchase was part of a larger Kennedy Wilson investment that totaled $342 million and included 1,457 units across Washington, Oregon, Colorado, Nevada and New Mexico. This portfolio purchase was announced by the company in late December, and it expands Kennedy Wilson’s multifamily portfolio focused on institutional-quality, garden-style apartments in rapidly growing markets in the western United States
“This off-market opportunity to acquire a collection of well-located apartment communities is a great way to cap off a year that emphasized improving our multifamily portfolio to include high-quality, income-generating communities where we are adding substantial value,” said Senior Managing Director Shem Streeter, who leads acquisitions for Kennedy Wilson’s U.S. multifamily division, in a statement. “We are confident in the underlying demographics and economic fundamentals of these markets, and we are especially pleased to continue growing our presence across the Mountain States region.”
Kennedy Wilson and its equity partners invested $122 million of equity in the portfolio, the company stated, including closing costs. Kennedy Wilson’s asset management plan includes adding and enhancing amenities and updating unit interiors across the portfolio.
The five-property portfolio contributes 1,008 units to Kennedy Wilson’s growing multifamily presence in the Mountain States, which now totals approximately 8,300 multifamily units, including units under development. The portfolio also adds 449 units to Kennedy Wilson’s Pacific Northwest portfolio, which now totals approximately 11,700 units, including units under development, according to the company. The acquisition builds on the company’s total multifamily portfolio of 29,500 units, including properties under construction.