Affordable Housing Help is on the Way for WA Families, Seniors

SEATTLE—As the West Coast buckles under housing affordability pressure, developers are racing to find solutions in the form of affordable multifamily units. Kennedy Wilson is increasing that type of availability in the form of units reserved for families and seniors through a growing partnership with Vintage Housing Holdings. In total, approximately 10,000 units will be completed by 2022.

“We are pleased to continue building on Kennedy Wilson’s long-term partnership with Vintage that brings together our respective strengths to expand the supply of high-quality affordable housing across the West Coast,” said Kurt Zech, president of Kennedy Wilson’s multifamily group. “The Vintage platform complements our growing market-rate portfolio and provides a pathway for our team to act on opportunities across every segment of the multifamily sector.”

To that end, the joint venture’s three new ground-up development projects have launched in Washington–The Station (Covington, WA), Quinn (Shoreline, WA) and Pointe (Des Moines, WA)–adding 585 affordable homes. Additionally, the joint venture secured an 18-year loan at 2.9% to fund the development and operation of the three new projects.

“The demand for affordable housing along the West Coast is greater than ever, and the ongoing pandemic further underscores the need for new well-built homes with the types of amenities that can be enjoyed as people spend more time at home and in their apartment communities,” Zech tells GlobeSt.com.

Plans include 1,965 units offering energy-efficient homes for working families and seniors earning between 50 to 60% of the area median income. There are 578 units expected this year at Seatac and The View with 354 units at The Farm in Washington before the end of 2021.

“Kennedy Wilson’s support has enabled us to significantly upscale our program and set out a long-term strategy to help improve housing options for seniors and working families across the US. By leveraging their strong housing platform and market access, we have been able to seize new opportunities and expand our reach,” said Ryan Patterson, president of Vintage.

Kennedy Wilson originally invested in Vintage Housing’s 5,400-unit portfolio in 2015 and has since nearly doubled the number of affordable homes in Washington, California and Nevada, all the while recouping all of the initial investment.

“Kennedy Wilson’s investment in Vintage Housing in 2015 was the first venture together for our two entities. Since 2015, we have grown the portfolio from 5,500 units to nearly 10,000. We have enjoyed a wonderful partnership with the Vintage Housing team,” Zech tells GlobeSt.com. “They are experts in the affordable housing space, and we are able to leverage our respective strengths to expand the platform and deliver much-needed affordable housing to markets where it is truly needed and enhance surrounding communities. We invested the time to understand Vintage Housing’s culture and business model and saw them as a natural partner as we expanded into this growing sector.”

The team relies on affordable housing tax credits and other state/federal financing resources to grow the portfolio with minimal equity. The portfolio has shown resilience throughout 2020, with an average of 99% of rents collected during the second quarter of 2020.

“Kennedy Wilson has a long history of investing in Washington, with a focus on market rate and affordable multifamily properties in the suburban regions surrounding Seattle,” Zech tells GlobeSt.com.  “As rents continue to rise across the Pacific Northwest, affordable housing is playing a growing role in the rental market and we are seeing that demand play out across the Vintage portfolio. The affordable projects we have completed in the past five years have attracted significant interest, and we find they lease up and stabilize quickly, which is a testament to the need for the type of high-quality highly amenitized communities we are providing alongside Vintage.”