Kennedy Wilson Secures $184M For 3 Student Housing Projects
The move take's the company's student housing loan portfolio to $850 million
To support work on three student housing projects, Kennedy Wilson has secured $184 million in financing.
The developments are located at the University of North Texas, the University of California, and the University of Wisconsin. All three, according to Kennedy, are close to facilities with amenity spaces, which include pools, spas, study rooms, meditation areas, garage access, and outdoor lounges.
The real estate investment firm did not disclose the lender of the senior construction loans.
“We are seeing student housing continue to outperform many other asset classes due to strong operating fundamentals and the scarcity of new development in high-barrier markets adjacent to educational institutions that are continuing to grow enrollment,” Thomas Whitesell, head of debt investment group at Kennedy, said in a statement.
“We are pleased to build on our long track record of student housing loan originations to become one of the most active student housing lenders in the country. Our top-tier sponsors are raising the bar for these student-oriented projects and will be well-positioned to capture the growing demand for amenities and offerings more typical of new urban, multifamily communities.”
The move by Kennedy took its student housing loan portfolio to $850 million, aiming to develop roughly 8,800 beds. Managing more than $27 billion of assets, Kennedy is involved in other asset classes including apartments, multifamily, office, hotels, retail, and industrial. Its properties are located in Southern California, Northern California, Hawaii, Mountain West, and the Pacific Northwest regions, as well as overseas markets including in Ireland, and the United Kingdom.
Last year, the Beverly Hills-based firm acquired a massive $4.1 billion construction loan portfolio. Kennedy’s debt investment platform has originated more than $2.3 billion worth of construction loans with institutional sponsors for multifamily and student housing.
Meanwhile, it’s been a bit of a struggle this year for student housing across the nation. The latest update from RealPage, which tracked 175 universities, found that preleasing was at just 92.8 percent for the Fall semester. That’s down 94.4% from last year and 95.6% in 2022.