Kennedy Wilson and Security Benefit's new joint venture makes first acquisition
Kennedy Wilson is forming a new joint venture platform with Security Benefit targeting stabilized, income producing, high-quality real estate investment opportunities in the Western U.S. The Joint Venture is initially targeting $500M of investments with potential to grow. In its role as asset manager, Kennedy Wilson expects to invest alongside Security Benefit with a 20% interest in the investments of the Joint Venture and will earn customary fees. The Joint Venture acquired Sunset North, an institutional quality, three-building campus in Bellevue, Washington, for $227M. The Joint Venture invested $77M of equity, including $15M of equity from Kennedy Wilson, and secured a 10-year, fixed rate, interest only loan for $150M at 3.25%. The property's three buildings were constructed between 1999 and 2000 and are currently 99% leased to ten long-term tenants with a weighted-average lease term of eight years.