BOISE, ID – Global real estate investment company Kennedy Wilson has bought Cottonwoods Apartments, a wholly-owned 188-unit apartment community in Boise, Idaho for $24 million. Kennedy Wilson invested approximately $11 million of equity (including closing costs) and secured a $14 million loan from Freddie Mac at a fixed rate of 4.33% for 10 years. The off-market buy reflects a continued focus on recycling capital into properties with value-add components in high growth markets.

“Boise has emerged as one of the fastest growing metro areas in the United States and one of the top-performing markets in our multifamily portfolio. New residents are drawn to Boise by the strong local education system, high-quality employment opportunities, relative housing affordability, lower taxes, job growth and lifestyle perks,” said Nick Bridges, Managing Director at Kennedy Wilson. “With Cottonwoods, we have the opportunity to take a very well-located property and add significant value through a top-to-bottom renovation program that will bring the property in line with the best multifamily properties in the area.”

Beginning immediately, Kennedy Wilson will initiate a large-scale renovation and rebranding of the property. More than $6 million will be invested to upgrade the unit interiors, improve the clubhouse, fitness center and pool, and address deferred maintenance projects. This will be most significant reinvestment into the property since it was built in 1986 and upon completion the apartments will be renamed “Reedhouse” as a tribute to the rich history of the site.

The apartments are located in Southeast Boise between a private lake and the Boise River, providing most of the units with waterfront views. The property is just minutes from some of the best employers in Boise, including Albertsons Companies, Micron, and the JR Simplot Company, as well as Boise State University and Downtown. Residents have direct access to public transportation, lush parks and walking/biking paths, including the 25-mile Boise River Greenbelt that follows the river through the heart of the city.

“We are excited about the potential to find and make value within the Boise multifamily market and plot to continue exploring opportunities to expand our presence there,” added Bridges. “With nearly 1,200 units owned currently, we hope to grow to 2,000 units in the Boise area by the end of 2020 through new acquisitions and development.”

Over the next several years, Kennedy Wilson has plans to develop 166 multifamily units on seven acres of land directly adjacent to the properties in its Boise portfolio, as well as 278 units on a fully-entitled, 22-acre site on the Boise River greenbelt in the high-income submarket of Eagle, Idaho.

The acquisition of Cottonwoods is the fifth significant buy for Kennedy Wilson in Boise since the company started investing in the region in 2014. Kennedy Wilson’s other assets include Whitewater Park Apartments with 324 units, Edgewater with 300 units, River Pointe with 204 units and Rosewood Apartments with 168 units. All of the Boise multifamily properties were secured through off-market transactions, bought directly from private sellers.

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ORLANDO, FL – Florida’s housing market reported more closed sales, rising median prices and more new listings in October compared to a year ago, according to the latest housing data released by Florida Realtors. Sales of single-family homes statewide totaled 22,272 last month, up 8.5 percent compared to October 2017.

“Florida’s housing market showed a rise in new listings in October, which is a excellent sign for potential homebuyers,” said 2018 Florida Realtors President Christine Hansen, broker-owner with Century 21 Hansen Realty in Fort Lauderdale. “New listings for existing single-family homes rose 9.5 percent compared to a year ago and new listings for condo-townhouse properties increased 7.9 percent from last October.

“At the same time, the median time for a sale to go to contract is getting shorter: For single-family homes, it was 40 days, down 7 percent from the same time last year; for condo-townhouse properties, it was 44 days, down 12 percent. With such a quick turnaround time to contract, buyers and sellers can benefit from the expertise of a Realtor who understands their local markets.”

October marked 82 consecutive months (more than six and a half years) that statewide median sales prices for both single-family homes and condo-townhouse properties increased year-over-year. The statewide median sales price for single-family existing homes was $253,853, up 7.6 percent from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. The statewide median price for condo-townhouse units in October was $180,000, up 5.9 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less. 

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in September 2018 was $260,500, up 4.6 percent from the previous year; the national median existing condo price was $239,200. In California, the statewide median sales price for single-family existing homes in September was $578,850; in Massachusetts, it was $390,000; in Maryland, it was $287,700; and in New York, it was $270,000.

Looking at Florida’s condo-townhouse market, statewide closed sales totaled 9,270 last month, up 14.1 percent compared to a year ago. Closed sales data continued to reflect fewer small sales and foreclosures in October: Small sales for condo-townhouse properties dropped 45.2 percent and foreclosures fell 28.2 percent year-to-year; while small sales for single-family homes declined 31.5 percent and foreclosures fell 21 percent year-to-year. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“Closed sales of single-family homes were up 8.5 percent in October compared to last year, thanks in large part to a level of inventory that has been on the rise since July,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “As of the end of the October, in fact, the inventory of active single-family home listings was up 9.8 percent year-over-year. If this trend continues into the new year, and should mortgage rates continue to climb as well, we might eventually see less vigorous price growth – but for now, price growth remains robust.

“Inventory levels in the condo-townhouse category have also been on the rise as of late, with active condo and townhouse listings up nearly 5.4 percent statewide compared to last year. This rise in inventory has been excellent for sales, as Florida Realtors’ data shows.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.83 percent in October 2018, up from the 3.90 percent averaged during the same month a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Media Center.

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