Kennedy Wilson Acquires Two Communities for $110M
Deal News | Feb 19, 2025 | Kennedy-Wilson Holdings Inc
Kennedy Wilson Holdings Inc., a global real estate investment company, has broadened its property portfolio by acquiring two multifamily communities for $110 million. The properties, Axle in Seattle and Denizen in Portland, struck a deal with Quarterra Multifamily. An 11% stake in the fund managed by Kennedy Wilson facilitated these purchases, bolstered by $40 million equity and $70 million in long-term fixed rate debt. The President of Kennedy Wilson’s Multifamily Group, Kurt Zech, highlights favorable market projections in Seattle and Portland, anticipating a strong rebound in rental demand due to improving employment opportunities and return-to-office initiatives. This strategic acquisition aligns with projected market recovery and positions Kennedy Wilson advantageously in these high-demand urban locales. Yardi Matrix reports underpin the optimism, indicating stable rent growth and high occupancy rates in both cities.
Sectors
- Real Estate Investment
- Multifamily Housing
Geography
- United States – The geographical focus of the article is within the U.S., specifically highlighting real estate transactions in Seattle, Washington, and Portland, Oregon.
Industry
- Real Estate Investment – This article primarily revolves around Kennedy Wilson Holdings Inc.'s investment activities in the real estate sector, highlighting the acquisition of multifamily properties in Seattle and Portland.
- Multifamily Housing – The focus on acquiring Axle and Denizen, both multifamily residential communities, emphasizes the significance of multifamily housing as a critical component of the investment strategy.
Financials
- $110 million – Total purchase price for the acquisition of the two multifamily communities, Axle and Denizen.
- $40 million – Total equity investment in the fund managed by Kennedy Wilson for the acquisition.
- $70 million – Long-term fixed rate debt used to finance the acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Kennedy Wilson Holdings Inc. | Buyer | Company | A global real estate investment company managing the fund that purchased Axle and Denizen. |
| Quarterra Multifamily | Selling Company | Company | The former owner of Axle and Denizen, engaged in selling multifamily properties. |
| Kurt Zech | President of Kennedy Wilson’s Multifamily Group | Person | Provides insights into the strategic acquisition and market expectations for the properties. |
| Yardi Matrix | Data Provider | Company | Provided market data and occupancy rates for the properties involved in the transaction. |
| KKR | Other Company | Company | Recently acquired a portfolio of multifamily properties from a fund sponsored by Quarterra. |