Kennedy Wilson has purchased two wholly owned multifamily properties in Seattle, Washington for $265 million.
The company acquired The Bristol at Southport, the region’s largest waterfront apartment asset at 383 units, for $191 million and Geo Shoreline, a newly built 164-unit community, for $74 million.
“These two acquisitions reflect our continued confidence in the Seattle region, where we were among the first institutional investors to establish a multifamily presence 15 years ago,” said Senior Managing Director Shem Streeter, who leads acquisitions for Kennedy Wilson’s multifamily division.
“Bristol and Geo are two premier assets with value-add upside that further our long-standing strategy to upgrade the quality of our portfolio within high-opportunity markets. Seattle is among the most economically vibrant cities in the world with proven fundamentals, a strong job market that will continue to draw employees as offices open, and robust rent growth that is now approaching pre-pandemic levels,” he added.
Kennedy Wilson invested $109 million of equity, including closing costs, in the two properties and secured $158 million in 10-year, fixed-rate financing at a weighted average interest rate of 3.35 percent.
Kennedy Wilson said The Bristol at Southport and Geo Shoreline are expected to add approximately $9 million of initial annual net operating income, which is projected to grow significantly as Kennedy Wilson continues leasing units and completes value-add initiatives including unit and amenity upgrades.