LOS ANGELES—Kennedy Wilson and Capri Capital Partners have purchased Bailey Farm Apartments, a 372-unit apartment community in Bothell, WA, a suburb of Seattle, from the Wolff Co. for $91.5 million. The purchase price includes $45.8 million in debt secured through a life insurance company.
“Our investment in Bailey Farm Apartments highlights Capri’s continued interest in investing in high-quality multifamily assets located in markets with strong underlying fundamentals,” says Ken Lombard, vice chairman of investments and a partner at Capri Capital Partners. “We are pleased to be teaming up with Kennedy Wilson on this off-market, lease-to-core investment, which is poised to capture the growing local residential demand, and we look forward to contributing to the ongoing revitalization of the Bothell market.”
Kennedy Wilson provided $4 million of equity for the purchase, which brings the company’s global multifamily portfolio to 17,753 units. The company also purchased two portfolios, a total of 456 units, in Spokane, WA and El Cerrito, CA late last year. “All three of these properties are very attractive assets acquired off market that complement our existing Western U.S. portfolio,” says Kurt Zech, president of Kennedy Wilson’s multifamily management group.
Bailey Farm has a mix of one-, two- and three-bedroom units and features plenty of onsite amenities, including a fitness room and yoga studio, resort-style swimming pool and outdoor fire pits and picnic area. The property is directly adjacent to a nature reserve and in a great neighborhood. “Downtown Bothell is experiencing an incredible amount of redevelopment that will benefit the property tremendously and continue the market’s strong rent growth,” says Zech. “Employers such as Boeing have helped to drive the strongest population growth in the metro, supporting solid apartment demand.”