Kennedy Wilson acquires Savier StreetFlats for $60 million
California-based Kennedy Wilson acquired Savier Street Flats here in the Northwest District in mid-December.
Located at 2270 N.W. Savier St., the 179-unit flats were purchased for a total of $60 million and is Kennedy Wilson's third significant purchase in the Portland region this season, including Heatherwood Apartments in Gresham, bought in October for $51 million, and the Latitude apartments in Happy Valley, purchased for $58 million in September.
KW invested $27 million of equity and assumed an eight-year loan of $33 million at a fixed rate of 3.5 percent in the Savier Street Flats.
The move reflects KW's continued focus on recycling capital into multi-family properties in high-growth markets, in both the Portland and Seattle markets.
Savier Street Flats was the final acquisition utilizing the 1031 exchange (which allows an investor to sell a property, reinvest the proceeds in a new property and defer all capital gain taxes) proceeds generated from the recent sale of Summer House, a wholly owned 615-unit apartment community in Alameda, Calif.
"Portland has established itself as one of the fastest growing apartment markets in the United States, and we are pleased to expand Kennedy Wilson's presence into a region that is forecasted to continue its upward trajectory," said Shem Streeter, Managing Director at KW. "With its relatively low cost of doing business, high quality of living and highly educated population, Portland has become one of the country's strongest economies anchored by high tech growth. Like many of the major urban markets along the West Coast, all signs point to an increased need for well-located housing like what we are offering at Savier Street Flats."
The LEED Platinum-certified Savier Street Flats includes a mix of studio, one, and two-bedroom units ranging from 553 square feet to 1,062 square feet across two mid-rise buildings. The community includes a fitness center, indoor and outdoor resident lounges, a pet spa, a bike wash and repair station and controlled access parking for vehicles and bikes. On the ground floor, residents have access to two retailers: Abbey Bar and Bottleshop and ZoomCare.
By Jules Rogers
Reporter, The Business Tribune
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