Kennedy Wilson Debt Platform Hits $1B Across Western US

Kennedy Wilson’s debt investment platform has hit $1 billion in secured loans across the Western US. The team has secured a full range of debt products, including first mortgage loans, mezzanine loans and other subordinate debt, all of which is backed by a group of well-capitalized sponsors.

The firm has focused on high-quality real estate in established markets on the US. Kennedy Wilson’s current debt portfolio includes 16 loans primarily secured by multifamily and office properties located throughout California, Washington and Colorado. This is Kennedy Wilson’s core debt strategy, according to EVP Matt Windisch, who says, “Our strategy is focused on providing capital to strong sponsors with high-quality real estate in the markets we know best, and we believe there is ample opportunity to continue growing our platform within that framework.”

Kennedy Wilson co-invests with its partners, and it has committed $93 million to the loans in its debt platform to date.

In the middle of last year, it launched a $2 billion debt platform. Kennedy Wilson partnered with Fairfax Financial Holdings to create the $2 billion debt platform to pursue first mortgage loans secured by real estate in the Western US, Ireland and the UK. As on its prior debt platform, Kennedy Wilson is co-investing alongside Fairfax, taking an average ownership of 20% in the investments. The two firms have a longstanding relationship and have invested together since 2010.

By July, the two firms had already originated its first loan under the platform, a $63 million loan for a multifamily community in the Boulder, CO. The senior bridge loan supported the initial leasing of the-newly constructed project, which includes a mix of studios, one-bedroom, and two-bedroom multifamily units and ground-floor retail space within reach of the Denver and Boulder areas. Kennedy Wilson served as asset manager, and it is investing alongside Fairfax and is earning management and performance fees.