Kennedy Wilson has formed a new joint venture platform with Security Benefit targeting stabilized, income-producing, high-quality real estate investment opportunities in the Western United States.
The joint venture is initially targeting $500 million of investments with potential to grow. In its role as asset manager, Kennedy Wilson expects to invest alongside Security Benefit with a 20 percent interest in the investments of the joint venture and will earn customary fees.
The joint venture also announced the acquisition of Sunset North, an institutional-quality, three-building campus in Bellevue, Wash., for $227 million. The joint venture invested $77 million of equity, including $15 million of equity from Kennedy Wilson, and secured a 10-year, fixed-rate, interest-only loan for $150 million at 3.25 percent.
Its first acquisition, the Sunset North office campus totals 464,000 square feet across seven acres at the intersection of Interstate 405 and Interstate 90, with direct access to downtown Bellevue and Seattle. The property’s three buildings, which are certified LEED Silver, were constructed between 1999 and 2000 and are currently 99 percent leased to 10 long-term tenants with a weighted-average lease term of eight years.
