Kennedy Wilson Set to Acquire Toll Brothers Apartment Living in $347M Deal
In a significant move within the multifamily housing sector, Kennedy Wilson, a prominent player in global real estate investment, has reached an agreement to acquire the Apartment Living platform from Toll Brothers, Inc., known for its luxury home construction. This deal, set at $347 million, marks a notable expansion for Kennedy Wilson, enhancing its investment management platform and bolstering its rental housing capabilities.
Kennedy Wilson’s acquisition includes the general partner interests in 18 properties, spanning both apartment and student housing sectors, amounting to approximately $2.2 billion in Assets Under Management (AUM). The purchase also extends to a development pipeline of 29 sites that could represent an invested capital nearing $3.6 billion once completed. Kennedy Wilson will undertake construction management responsibilities for these properties, signifying a leap forward in its multifamily development proficiency.
Beyond the acquisition, this deal fosters a strategic long-term partnership between Kennedy Wilson and Toll Brothers, opening channels for reciprocal investment opportunities in rental and for-sale housing—an arrangement that promises to cultivate a steady stream of collaborative deal flow. In this mutually advantageous alliance, Kennedy Wilson will invest roughly $90 million initially and will take over as the general partner in the newly acquired assets.
Strategically, such infrastructural growth launches Kennedy Wilson to a vanguard position within the rental housing market, amplifying its footprint to over 80,000 units owned, financed, or managed. It consolidates the company’s prowess not only in real estate development and acquisitions but also in asset management, further sharpened by a robust credit platform geared toward housing.
Capturing the essence of this transformative deal, William McMorrow, Chairman and CEO of Kennedy Wilson, shared his anticipatory view of the merger’s potential: “We are thrilled to welcome the best-in-class team at Toll Brothers Apartment Living to Kennedy Wilson and to further accelerate the growth of our investment management business and multifamily development capabilities at a time when the country is in true need of new, high-quality housing.”
The transaction additionally heralds a buoyant future for Toll Brothers’ Apartment Living team as they integrate into Kennedy Wilson’s operations, bringing along their expertise and executive oversight. From Toll Brothers’ vantage point, as conveyed by its Chairman and CEO, Douglas C. Yearley, Jr., the deal signifies a pivot towards an asset-light homebuilding model, while recognizing the value created by the Apartment Living branch. “This transaction will unlock significant capital for our stockholders, while allowing us to focus on our core homebuilding business and continue our transformation to a more asset-light homebuilder,” said Yearley.
As the parties anticipate the slated closure of this transaction in October 2025, contingent upon customary closing conditions, the multifamily housing landscape observes with keen interest the unfolding of a revamped paradigm in development and investment, underscored by innovation and strategic growth.