Kennedy Wilson JV Acquires Seattle Asset for $173M
The property was previously purchased by Vanbarton Group in 2019.
Kennedy Wilson has partnered with Japan-based real estate asset management company Kenedix Inc. and Hulic Co., Ltd., to acquire The Danforth, a 265-unit multifamily property in Seattle. This acquisition brings Kennedy Wilson’s portfolio to over 13,000 market-rate and affordable units in the U.S.
The partnership purchased the property at 1425 Spring St. for $173 million from previous owner Vanbarton Group, which picked it up for $209.2 million in 2019, according to Yardi Matrix. Kennedy Wilson provided $6.6 million in equity with a 10 percent ownership interest in the transaction.
Moving forward, Kennedy Wilson will act as the partnership’s asset manager. The contributing parties intend to provide new housing in and around Seattle, which has limited new construction. Yardi Matrix shows the Seattle metro as having 15 properties currently under construction, with 122 prospective projects within a 3-mile radius.
The Danforth stands 16 stories high, with its ground floor occupied by a Whole Foods supermarket. On-site amenities include a fitness center, clubhouse, resident lounge, barbecue patio and rooftop solarium. Floor plans at the property include one- to three-bedroom layouts fit with in-unit washer and dryers. The site was completed in 2018.
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According to Yardi Matrix information, The Danforth is currently 95 percent occupied with asking rents ranging between $2,089 to over $7,000 for penthouse residences. Located in Stattle’s First Hill neighborhood, residents are near downtown Seattle’s shops and dining options. The property is situated between Swedish Hospital’s First Hill Campus and Seattle University’s School of Law.
Kennedy Wilson’s diverse ventures
Kennedy Wilson continues to strengthen its relationship with international companies. Earlier this year, the company forged a partnership with Tokyu Land Corp. to launch a preferred equity and mezzanine real estate investment platform.
In December, the company acquired two communities in Seattle and Portland for $110 million. The transaction included Axle, a 226-unit community in Seattle and Denizen in Portland, which includes212 residences. Kennedy Wilson has an 11 percent ownership stake in the properties.
Apart from the multifamily market, Kennedy Wilson has ties within the student housing industry as well. Recently, the company was listed as the lender for VERVE Fayetteville a new student housing development intended for students attending the University of Arkansas. It will incorporate 845 beds, and is expected to come online in time for the 2027-2028 school year.
