Kennedy Wilson expands multifamily portfolio with two Seattle acquisitions

Kennedy Wilson expands multifamily portfolio with two Seattle acquisition
The Bristol at Southpor

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.