Kennedy Wilson, Fairfax Complete First Loan in $2B Platform
The $63 million senior bridge loan will support initial leasing of the-newly constructed project that is close to the Denver and Boulder areas.
A $63 million loan for a multifamily community in the Boulder, CO area is the first loan made under a $2 billion platform secured by real estate in the United Kingdom, Ireland and the western United States.
The $2 billion initiative was launched by global real estate investment company Kennedy Wilson and Fairfax Financial Holdings earlier this year.
The $63 million senior bridge loan will support 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.
“This loan exemplifies our investment strategy of providing capital to strong sponsors with well-built projects in our core markets,” said Matt Windisch, executive vice president at Kennedy Wilson, in the statement. “We have seen tremendous interest since launching the debt platform in May that has resulted in a significant pipeline of opportunities for us to consider. We are excited to complete the first loan in the platform and to continue building on our long track record of successful debt investing.”
The $2 billion debt platform launched in May of this year. Kennedy Wilson and Fairfax said they have partnered on $7 billion in aggregate acquisitions in the last decade, $3 billion of which has been related to real estate.
Kennedy Wilson is playing the role of asset manager. It is investing alongside Fairfax and is earning management and performance fees. Kennedy Wilson invested $16 million in the debt platform’s first loan.
The $63 million loan builds on Kennedy Wilson’s growing real estate related debt investment activity. Together with its partners, Kennedy Wilson has purchased or originated approximately $450 million in real estate related debt over the past year.
Kennedy Wilson owns, operates, and invests in real estate through its balance sheet and through its investment management platform, the statement said. Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and associated investment management.