Kennedy Wilson Fund V Acquires Two Multifamily Properties in the Greater Seattle Area for $141M

Company adds 613 units as Washington portfolio approaches 10,000 units

BEVERLY HILLS, Calif.--(BUSINESS WIRE)-- Global real estate investment company Kennedy Wilson (NYSE:KW) today announced that Kennedy Wilson Real Estate Fund V (“Fund V”) purchased two multifamily properties in separate transactions for a combined purchase price of $141 million. In total, Fund V invested $50 million of equity (inclusive of closing costs) and secured new debt of $92 million through Freddie Mac at an average rate of LIBOR+2.23%.

“We are pleased to expand our presence in the greater Seattle market where we have a strong track record of performance,” said Kurt Zech, president of Kennedy Wilson Multifamily Investments. “The Snohomish County submarket, where these two assets are located, features many employers from a variety of industries, including aerospace, high-tech, biotech, healthcare and life sciences, and benefits from high office occupancy rates, a well-educated workforce and consistently low unemployment rates.”

Alara Harbour Pointe, a 230-unit apartment community located in Mukilteo, WA was purchased for $46.5 million. It was built in 1998 and is situated on twelve acres within a master-planned community near the Seaway Center Business Park and Paine Field Airport, home to Boeing. In addition, the nearby Mukilteo School District is one of the highest ranking school districts in the state.

Tivalli, purchased for $94.3 million, was built in 2014 and has 383 units. It is located approximately 20 minutes from Seattle and Bellevue and 15 minutes from Everett in Lynnwood. The property sits one mile from the shores of Martha Lake and is adjacent to Vintage at Urban Center, another Kennedy Wilson apartment community.

Kennedy Wilson’s global apartment portfolio includes 131 communities with more than 25,000 units. The Company now has an ownership interest in 9,566 units across 39 communities in the State of Washington. Kennedy Wilson is a 12% investor in Fund V.

About Kennedy Wilson

Kennedy Wilson (NYSE:KW) is a global real estate investment company. We own, operate, and invest in real estate both on our own and through our investment management platform. We focus on multifamily and commercial properties located in the Western U.S., UK, Ireland, Spain, Italy and Japan. To complement our investment business, the Company also provides real estate services primarily to financial services clients. For further information on Kennedy Wilson, please visit www.kennedywilson.com.

Special Note Regarding Forward-Looking Statements

Statements in this press release that are not historical facts are “forward-looking statements” within the meaning of U.S. federal securities laws. These forward-looking statements are estimates that reflect our management’s current expectations, are based on assumptions that may prove to be inaccurate and involve known and unknown risks. Accordingly, our actual results or performance may differ materially and adversely from the results or performance expressed or implied by these forward-looking statements, including for reasons that are beyond our control. For example, we may not be able to maintain our current acquisition or disposition pace or identify future properties to acquire on terms we consider attractive, and our current property portfolio may not perform as expected. Furthermore, the capitalization rate of our investments represents the net operating income of an investment for the year preceding its acquisition or disposition divided by the purchase or sale price. Capitalization rates represent historical performance and are not a guarantee of future net operating income. Accordingly, you should not unduly rely on these statements, which speak only as of the date of this press release. We assume no duty to update the forward-looking statements, except as may be required by law.

KW-IR

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Source: Kennedy Wilson