Kennedy Wilson has expanded its portfolio in the growing Seattle multifamily market by 547 units. The company acquired two apartment communities for a total of $265 million, with $109 million of its own equity, including closing costs, and $158 million in acquisition financing.
According to Yardi Matrix data, Kennedy Wilson acquired The Bristol at Southport from Seco Development and Geo Shoreline from AAA Management. The 10-year, fixed-rate financing carries a weighted average interest of nearly 3.6 percent, according to Kennedy Wilson. Shem Streeter, senior managing director at Kennedy Wilson’s multifamily division, told Multi-Housing News that KKR provided the financing for the acquisition of The Bristol at Southport while Cigna provided financing for the Geo Shoreline purchase.
Kennedy Wilson acquired The Bristol at Southport, a 383-unit community located in the Southport mixed-use master planned community, for $191 million. The dual-property apartment was built in 2002 and 2008 and offers studio, one-, two- and three-bedroom units. The community was built with a sundeck, barbecue area, fitness center, clubhouse and a dog run.
Kennedy Wilson is planning to invest $7 million into The Bristol at Southport, which will go towards continuing the upgrades of the units and amenities. Streeter told MHN that the community was approximately 96 percent occupied.
The company also acquired Geo Shoreline from AAA Management for $74 million, according to Yardi Matrix data. The community was recently completed in 2020 and offers 164 units in studio, one- and two-bedroom floorplans with some units designated as live-work floorplans. The community’s amenities include a coworking space, fitness center, rooftop deck and lounge and dog park and grooming center. Streeter also told MHN that Geo Shoreline was also approximately 96 percent occupied, but 99 percent leased.
Streeter said in prepared remarks that Kennedy Wilson has continued confidence in the Seattle region. He added in his prepared statement that the two communities have value-add upside and both fit within the company’s strategy of upgrading its portfolio within high-opportunity markets.
RECYCLING CAPITAL INTO HIGH GROWTH MARKETS
According to Kennedy Wilson, the company is recycling proceeds from its recent asset sales into acquisitions in rapidly growing markets across the U.S. In the Seattle area, Kennedy Wilson sold a 451-unit community in Bellevue, Wash., for $191 million in December.
More recently, the company also acquired a 332-unit community in Denver as part of its strategy to expand its portfolio in high-performing U.S. markets.
Streeter told MHN that Kennedy Wilson’s multifamily portfolio in the Pacific Northwest region now totals more than 11,000 units. The latest two acquisitions in Seattle add to the company’s multifamily portfolio that hit 32,000 units at the close of the second quarter of 2021.