Home Finance Kennedy Wilson Spends $121MM on 348-Unit Tigard Apartment Property

Kennedy Wilson Spends $121MM on 348-Unit Tigard Apartment Property

Arbor Heights Tigard Kennedy Wilson Fund VI Security Properties
Image courtesy of Kennedy Wilson

(EDITOR’S NOTE: The seller of the 348-unit community was Seattle-based Security Properties.)

BEVERLY HILLS, Calif. (December 17, 2021) – Kennedy Wilson Fund VI (“Fund VI”), a commingled Western U.S. value-add fund managed by Kennedy Wilson, has acquired Arbor Heights, a garden-style apartment community in Tigard, Oregon, for $121 million ($347,701 per unit). 

“The Portland area has proven its resilience over the past two years through continued population growth and a strong employment market that have driven demand for high-quality, conveniently located housing,” said Kennedy Wilson President Mary Ricks. “We are excited to expand our presence in Portland at a key point in the region’s growth trajectory and to add Arbor Heights to our successful Fund VI portfolio, which has showcased our relationships throughout the Western U.S. and the value-add strategies that contribute to a top-tier tenant experience.”

Beginning immediately, Kennedy Wilson plans to invest more than $4 million to continue recent renovations onsite at Arbor Heights, updating interiors of the community’s one-, two- and three-bedroom apartments, enhancing amenities and common spaces, renovating building exteriors and addressing deferred maintenance. The community features a full collection of amenities including a clubhouse, fitness center, dog park, playground, and a resort-style pool.

Arbor Heights is located within Washington County, fewer than five minutes from the Pacific Highway, many restaurants and retailers, and within 30 minutes driving distance of Downtown Portland. The 1997-built community is set on a hillside with excellent views of the valley and proximity to many of Portland’s largest employers, including Nike, Columbia and Intel.

The transaction is one of the final investments in Fund VI, which has acquired more than $1.8 billion in value-add multifamily, flex office/R&D, industrial, and other commercial investments across the Western United States. Following the acquisition of another Western U.S. multifamily property under contract to close, the fund will be fully invested. Kennedy Wilson has an 11% interest in Fund VI.

“The acquisition of Arbor Heights furthers our Fund VI strategy of investing in assets within strong, compelling markets across the Western U.S. with a focus on underperforming real estate opportunities where we can apply our asset management program and create value through renovations and improvements,” said Gary Palmer, President of Commercial Investments. “Our strategy has delivered preliminary results well above targeted returns, and we look forward to closing out the acquisition period of Fund VI in the next month.” 

About Kennedy Wilson

Kennedy Wilson (NYSE:KW) is a leading global real estate investment company. We own, operate, and invest in real estate through our balance sheet and through our investment management platform. We focus on multifamily and office properties located in the Western U.S., U.K., and Ireland. For further information on Kennedy Wilson, please visit: www.kennedywilson.com.