Leading global real estate investment company and active national student housing lender Kennedy Wilson recently closed senior construction loans totaling $184 million to develop three student housing projects at the University of Wisconsin–Madison, University of North Texas, and University of California, Berkeley. These recent deals (completed through Kennedy Wilson’s debt investment platform) expand the student housing loan portfolio to $850 million to develop approximately 8,800 beds, with an additional $1 billion of new student housing loans totaling 8,200 beds currently being evaluated.
Currently in various stages of construction, these three projects are near university facilities and feature expansive amenity spaces, resort-style pools and spas, fitness centers, outdoor lounges, private study rooms, meditation spaces, and controlled garage access.
The new student housing loans are the latest in an active year for the firm’s debt investment platform. And Q3 2024 marked the first anniversary of Kennedy Wilson’s acquisition of a $4.1 billion construction loan portfolio. Since the deal, Kennedy Wilson’s debt investment platform has originated over $2.3 billion in multifamily and student housing construction loans with institutional sponsors nationwide.
The company has an average ownership of 2.5% in loans closed since Q3 of 2023 and maintains a strong construction loan pipeline. As an asset manager, the company earns customary management fees.
KEY QUOTES:
“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. 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.”
- Thomas Whitesell, Head of the Debt Investment Group at Kennedy Wilson
