Kennedy Wilson Joins Forces with Kenedix and Hulic to Acquire Seattle's The Danforth for $173M

In a significant extension of its multifamily portfolio within the Pacific Northwest, Kennedy Wilson has forged a tri-party alliance with Japanese-based firms Kenedix, Inc. and Hulic Co., Ltd. The collaboration has resulted in the acquisition of The Danforth, a prominent multifamily community located in Seattle, at a purchase price of $173 million.

Kennedy Wilson's investment in The Danforth reinforces its robust presence in the region, where it owns and manages over 13,000 market rate and affordable apartment units. The company's expertise in recognizing the potential in established markets is exemplified through its strategic choice of The Danforth, a property that merges modern living with convenience by pairing luxury residential units with commercial vitality, thanks to the presence of Whole Foods Market as the sole ground-floor tenant.

William McMorrow, Chairman and CEO of Kennedy Wilson, views this as a strategic acquisition that aligns with their commitment to quality housing. "Given our 30-year history in Japan, we are proud to continue the growth of our investment management platform alongside these two prestigious companies that are aligned with our investment strategy and our focus on delivering quality housing within growing Pacific Northwest markets," he states. McMorrow further identifies The Danforth as a sound investment opportunity citing the building's recent construction, competitive pricing, and the strengthening demand in the area, partially driven by the tech industry's recent return-to-work policies.

Kenedix, Inc. and Hulic Co., Ltd. have also expressed their enthusiasm for the joint venture. Hikaru Teramoto, Kenedix's Representative Director, President & COO, acknowledges the appeal of the U.S. real estate market, emphasizing the anticipated population growth and the venture's potential for attractive returns. Sohei Okuno, General Manager at Hulic, also highlighted the joint venture as an aligning investment with their international growth strategy, marking it as their inaugural collaborative venture with Kennedy Wilson and Kenedix.

The Danforth is a 16-story tower completed in 2018, offering 1- to 3-bedroom layouts, top-tier amenities, and the latest Whole Foods Market. Its choice location intersects Seattle’s First Hill and Capitol Hill neighborhoods, areas notable for premier dining, nightlife, and employment opportunities, including the largest hospital network in Seattle that is undergoing a major expansion project.

In this venture, Kennedy Wilson holds a 10% interest, having invested $6.6 million of equity. The company will utilize its asset management expertise to contribute to the joint venture's success while earning customary fees.

This investment demonstrates the unrelenting dedication to delivering top-tier multifamily communities in flourishing urban hubs as well as the multifaceted advantages of strategic partnerships to improve the living standards and socio-economic landscapes of burgeoning cities.