Kennedy-Wilson Provides $84M for Alexandria Redevelopment
Deal News | Feb 05, 2025 | Kennedy-Wilson Holdings Inc
Kennedy-Wilson Holdings Inc. has extended an $84 million construction loan to support a multifamily development project in Alexandria, Northern Virginia. This financial backing comes as a joint venture between Carr Properties and Barings embarks on the redevelopment of the 425 Montgomery Street location, a project valued at $131 million. The development involves transforming a previously vacant office space into a 250,000-square-foot, 237-unit residential property. Cushman & Wakefield provided financial advising services on this transaction. Groundbreaking preparations are scheduled for completion next month, with the project poised for completion in late 2026. This move is illustrative of the growing interest and investment in Northern Virginia's housing market, with demographic trends and real estate dynamics contributing to optimism about the region’s rental growth. Alongside other major housing developments in the area, such as those being undertaken by Wesley Housing and SCG Development, Alexandria's market seems buoyant for future residential investments.
Sectors
- Real Estate Development
- Private Equity and Investment
- Construction
Geography
- United States – The article is centered around a housing development project in Alexandria, Virginia, USA, and involves national stakeholders.
- Northern Virginia – The specific geographic focus of the development projects including Alexandria and the surrounding areas.
Industry
- Real Estate Development – The article revolves around real estate developments in Northern Virginia, focusing on a major residential redevelopment project in Alexandria.
- Private Equity and Investment – Involvement of a private equity firm and other financial entities in providing significant financing for the construction project.
- Construction – The $131 million 237-unit multifamily redevelopment project is an example of burgeoning construction activity in Northern Virginia.
Financials
- $84 million – The construction loan amount provided by Kennedy-Wilson for the redevelopment project.
- $131 million – The total value of the multifamily redevelopment project in Alexandria.
- $15.4 million – The acquisition cost of the 425 Montgomery Street property by Carr Properties.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Kennedy-Wilson Holdings Inc. | Lender | Company | A global real estate investment company that provided the $84 million loan for the Alexandria project. |
| Carr Properties | Developer | Company | Partnered to develop the 425 Montgomery Street project, and previously involved in other significant real estate developments. |
| Barings | Equity Partner | Company | An international investment management firm participating as an equity partner in the Alexandria project. |
| Cushman & Wakefield | Financial Advisor | Company | Advised on the financing for the joint venture in this real estate development project. |
| Wesley Housing | Developer | Company | Part of a partnership proposing another residential development in Arlington, VA. |
| Melwood | Nonprofit Partner | Charity | Disability advocacy nonprofit joining Wesley Housing for a housing project in Northern Virginia. |
| SCG Development | Developer | Company | Involved in financing and developing affordable housing in the region. |