SEATTLE — A joint venture between real estate investment company Kennedy Wilson (NYSE: KW) and an undisclosed partner has acquired Radius, a 282-unit multifamily community in Seattle’s South Lake Union submarket, for $141 million.
Radius is a class-A apartment community built in 2015. Amenities include two rooftop decks, gaming room, fitness center and a private resident media room. The seller was not disclosed.
Radius is located directly across the street from the world headquarters and main campus of Amazon and walking distance to over 10 million square feet of additional Amazon office space. The property is also within walking distance of employers such as Facebook, the Fred Hutchinson Cancer Research Center and a future 607,000-square-foot Google campus.
The 50/50 joint venture invested $72 million of equity for the purchase, drawing from its recent $58 million sale of The Grove, a 331-unit community in San Jose, Calif. The partnership also secured a 10-year acquisition loan of $70 million. The financing features a fixed interest rate of 4.06 percent and interest-only payments for the first five years.
“Radius is an exciting addition to our Seattle apartment portfolio,” says Shem Streeter, managing director of Kennedy Wilson Multifamily Investments. “Seattle’s South Lake Union neighborhood features some of the best rental demographics in the country, including a thriving job market and close proximity to many high-growth companies.”
Kennedy Wilson now has ownership interest in 10,430 units across 41 communities in the state of Washington. The company’s stock price closed at $21.05 per share on Friday, Feb. 3, up from $18.94 one year ago.
— Jeff Shaw