SEATTLE, WA – Global real estate investment firm Kennedy Wilson (NYSE: KW) has added two wholly owned apartment properties to its Seattle, Washington portfolio. The Kennedy Wilson team acquired The Bristol in Southport, the area's largest waterfront apartment building with 383 units, for $ 191 million and Geo Shoreline, a newly built community of 164 units, for $ 74 million. The two properties complement Kennedy Wilson's multi-family portfolio, which focuses on high-quality apartments in fast-growing markets in the western United States.
"These two acquisitions reflect our continued confidence in the Seattle area, where we were among the first institutional investors to establish an apartment building 15 years ago," said Shem Streeter, senior managing director in charge of the acquisitions for Kennedy Wilson's multi-family division directs. “Bristol and Geo are two high-quality, value-adding assets that support our long-standing strategy to improve the quality of our portfolio in high-potential markets. Seattle is one of the most economically dynamic cities in the world with proven fundamentals, a strong labor market that will continue to attract employees after the offices open, and robust rental growth that is now approaching pre-pandemic levels. "
The Bristol in Southport is a two-waterfront condominium development built in 2002 and 2008 within the proposed mixed-use development in Southport. as well as a four-star Hyatt Regency hotel. The property is also adjacent to Gene Coulon Park, a 57-acre waterfront park along the southeastern shores of Lake Washington. Kennedy Wilson plans to invest $ 7 million to further upgrade the units and on-site amenities, including a two-story fitness center, multiple lounges, business centers, an animal park, and waterfront amenities.
Geo is located in the Shoreline submarket of Seattle and is a luxury apartment community built in 2020 with first-class amenities such as co-working space, a 24-hour fitness and training facility, a rooftop terrace and lounges, as well as a dog park and dog salon. The apartments are in close proximity to some of the world's most successful businesses as well as the Shoreline light rail expansion, which will improve accessibility to and from Shoreline in 2024.
Kennedy Wilson invested $ 109 million in equity, including closure charges, in the two properties and raised $ 158 million in a 10-year fixed income loan at a weighted average rate of 3.35 percent. The Bristol in Southport and Geo Shoreline are expected to contribute approximately $ 9 million of initial annual net operating income, which is expected to grow significantly as Kennedy Wilson continues to rent units and complete value-added initiatives including unit and facility modernizations.
The acquisitions contribute to the recent transactional activity at Kennedy Wilson as well as an expansion of the company's multi-family portfolio, which has grown from 30,000 units at the end of 2020 to approximately 32,000 units at the end of the second quarter of 2021.