A real estate fund managed by Kennedy Wilson has acquired two multifamily communities — Axle, a 226 multifamily community in Seattle and Denizen, a 212-unit multifamily community in Portland – for a total of $110 million.
The two newly constructed, amenity-rich communities boost Kennedy Wilson’s significant multifamily presence in the Pacific Northwest that is currently approaching 13,000 marke-rate and affordable apartment units.
“The acquisition of these two high quality developments reflects our focus on opportunistic investing during periods of uncertainty as well as our continued confidence in the Pacific Northwest. We are seeing sustained supply demand imbalances for high-quality multifamily product in both Seattle and Portland and are encouraged by the underlying strength of their employment markets where return-to-office initiatives are well underway,” said Kurt Zech, President of Kennedy Wilson’s Multifamily Group. “Axle and Denizen present a unique opportunity for our fund to acquire like-new real estate in areas with few ground-up multifamily starts that are continuing to attract young renters seeking access to the outdoors and high-quality housing at attractive rent pricing.”
Listed among the most educated cities in the world, Seattle continues to serve as a major global hub for leading technology, medical, and life science companies that serve as strong employment drivers. The increasingly diverse economic base is also a host to well-established industries including aerospace, transport and tourism that have attracted young, educated professionals in search of well-paying jobs and a high quality of life.
Portland, Oregon’s largest city, sits on the Columbia and Willamette rivers, in the shadow of snow-capped Mount Hood. It’s known for its parks, bridges and bicycle paths, as well as for its eco-friendliness and its microbreweries and coffeehouses. Iconic Washington Park encompasses sites from the formal Japanese Garden to Oregon Zoo and its railway. The city hosts thriving art, theater and music scenes.
Kennedy Wilson has an 11% ownership interest in the real estate fund, which acquired the two properties with a total equity investment of $40 million, including closing costs, and financed the acquisitions with long-term fixed rate debt totaling $70 million.
