Kennedy Wilson Acquires Two Multifamily Communities in Seattle for $265 Million

BEVERLY HILLS, California – (BUSINESS WIRE) – Global real estate investment company Kennedy Wilson (NYSE: KW) has added two wholly-owned apartment properties to its Seattle, Washington portfolio. The Kennedy Wilson team acquired The Bristol in Southport, the area’s largest waterfront apartment building with 383 units, for $ 191 million and Geo Shoreline, a newly built community of 164 units, for $ 74 million. The two properties complement Kennedy Wilson’s multi-family portfolio, which focuses on high-quality apartments in fast-growing markets in the western United States.

“These two acquisitions reflect our continued confidence in the Seattle area, where we were among the first institutional investors to establish an apartment building 15 years ago,” said Shem Streeter, senior managing director in charge of the acquisitions for Kennedy Wilson’s multi-family division directs. “Bristol and Geo are two high-quality, value-adding assets that support our long-standing strategy to improve the quality of our portfolio in high-potential markets. Seattle is one of the most economically dynamic cities in the world with proven fundamentals, a strong labor market that will continue to attract staff after the offices open, and robust rental growth that is now approaching pre-pandemic levels. ”

The Bristol in Southport is a two waterfront condominium development built in 2002 and 2008 within the proposed Southport mixed use condominium with a waterfront boardwalk, restaurants, Class A office that will bring 4,500 employees to the area when rented . as well as a four-star Hyatt Regency hotel. The property is also adjacent to Gene Coulon Park, a 57-acre waterfront park along the southeastern shores of Lake Washington. Kennedy Wilson plans to invest $ 7 million to continue upgrading the units and on-site amenities, including a two-story fitness center, multiple lounges, business centers, an animal park, and waterfront amenities.

Geo is located in the Shoreline submarket of Seattle and is a luxury apartment community built in 2020 with first-class amenities such as co-working space, a 24-hour fitness and training facility, a rooftop terrace and lounges, as well as a dog park and dog salon. The apartments are in close proximity to some of the world’s most successful businesses as well as the Shoreline light rail expansion, which will improve accessibility to and from Shoreline in 2024.

Kennedy Wilson invested $ 109 million in equity, including closure charges, in the two properties and raised $ 158 million in a 10-year fixed income loan at a weighted average rate of 3.35 percent. The Bristol at Southport and Geo Shoreline are expected to contribute approximately $ 9 million of initial annual net operating income, which is expected to grow significantly as Kennedy Wilson continues to rent units and complete value-added initiatives including unit and facility modernizations.

The acquisitions add to the recent transactional activity at Kennedy Wilson as well as an expansion of the company’s multi-family portfolio, which has grown from 30,000 units at the end of 2020 to approximately 32,000 units by the end of the second quarter of 2021.

About Kennedy Wilson

Kennedy Wilson (NYSE: KW) is a leading global real estate investment company. We own, operate and invest in real estate through our balance sheet and through our investment management platform. We focus on apartment and office properties in the western US, UK and Ireland. For more information on Kennedy Wilson, please visit: www.kennedywilson.com.

Special note on forward-looking statements

Statements in this press release that are not historical facts are “forward-looking statements” within the meaning of US securities laws. These forward-looking statements are estimates that reflect the current expectations of our management, are based on assumptions that may prove to be incorrect and involve known and unknown risks. Accordingly, our actual results or performance could differ materially and adversely from those expressed or implied in these forward-looking statements, including for reasons beyond our control. For example, we may not be able to maintain our current acquisition or disposal pace or find future properties on terms that we consider attractive, and our current property portfolio may not perform as expected. Accordingly, you should not place undue reliance on these statements, which speak only as of the date of this press release. We do not assume any obligation to update the forward-looking statements, unless this is required by law.

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