Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BEVERLY HILLS, CA-Guardian Life Insurance Co. of America has invested $30 million for its second equity stake in locally based Kennedy Wilson in the past several weeks. The New York City-based life insurance firm previously invested $23.25 million in a Kennedy Wilson apartment acquisition in San Jose, CA.

The announcement by the two firms describes Guardian’s investment as “a major interest in the real estate services and investment firm of Kennedy Wilson.” Guardian purchased $30 million of convertible subordinated debt in Kennedy Wilson that, when converted, provides Guardian a 10% interest in the Beverly Hills-based company. Kennedy Wilson’s management retains a 54.1% ownership.

Earlier this year, Kennedy Wilson raised $53 million in new equity through the issuance of convertible preferred shares. Among those investing in the previous offering were the LeFrak Organization, a major real estate, energy and investment company based in New York City. Another significant investor in the previous offering was the Royce Funds of New York City.

William McMorrow, chairman of Kennedy Wilson, notes that Guardian carries an AA+ Standard & Poor’s rating. McMorrow says that the new capital “allows our company to take maximum advantage of the current opportunities in all sectors of the real estate investment, distressed debt and services businesses.” Thomas Sorell, executive vice president and chief investment officer of Guardian, comments that the mutual life insurance firm’s new relationship with Kennedy Wilson “will provide us with greater opportunities to build on our solid real estate portfolio and provide long-term value to our policyholders.”

The other recent deal involving the two companies was their $84 million acquisition of Avalon at Blossom Hill, a 324-unit apartment complex in San Jose that the new owners have renamed Saybrook Pointe. The partnership of Kennedy Wilson and Guardian plans to invest an additional $4.5 million upgrading and rebranding the property, which it bought from publicly held AvalonBay Communities, which invested a total of $62 million in the property, according to SEC filings.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.