A Beverly Hills real estate investment firm is moving aggressively into Boise’s apartment-rental market, buying complexes, renovating them and raising rents.
Kennedy Wilson announced its latest acquisition last week. The firm bought the 188-unit Cottonwoods Apartments in Southeast Boise for $24 million, the company said in a news release. The rents — currently at $997 per month for a 1-bedroom apartment and around $1,250 for a 2-bedroom — are expected to rise “in line with other similar Class-A apartments in the area with full-service management,” according to spokesman Emily Heidt.
The upscale complex was built in 1986 at 1671 S. Riverstone Lane, east of Parkcenter Boulevard along the Boise River.
The company has been investing in Boise since 2014. It now owns nearly 1,200 apartments here. By 2020, it hopes to own 2,000 units in the area.
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“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,” Managing Director Nick Bridges said in the release.
The company said it will soon develop new complexes of its own. It is planning 166 multifamily units on land next to properties it owns in Boise and 278 units on a 22-acre site in Eagle near the Greenbelt.
One of the earlier acquisitions was the Whitewater Park Apartments near Whittier Elementary School in Boise’s West End. In 2015, Kennedy Wilson raised rents, in some cases by more than 50 percent, the Statesman reported then. A one-bedroom apartment facing Quinn’s Pond increased from $777 to $1,176. The complex has 324 units.
The company also owns 300 units in the Edgewater Apartments near State Street and Collister Drive, 204 in the River Pointe Apartments west of Glenwood Street in Garden City, and 168 in the Rosewood Apartments near the Boise Towne Square mall.
Kennedy Wilson said it will spend $6 million to renovate the Cottonwoods. Over eight months, residents can expect to see a revamped gym, pool and clubhouse. The company hopes to finish those next summer. Interior units will be renovated over three to four years, Heidt wrote in an email to the Statesman.
The apartments were formerly owned by Oak Hill Terrace Associates, managed by Jeremy Schneir of Coldwell Banker in Truckee, California.
The complex will also get a new name: Reedhouse, named after an early name for the Boise River in the 19th century. The river was once called “Reed’s River,” after John Reed of the Pacific Fur Co. who explored the area in 1813.
As of 2017, Kenendy Wilson managed more than 50 million square feet of real estate in the western U.S. and Europe. The company is valued at $2.8 billion.
The company paid for the apartments with $11 million in equity and a $14 million loan from Freddie Mac at a fixed 4.33 percent interest rate for 10 years, according to the release.