A421-unit community in affluent Westchester County, New York, is the latest portfolio addition for Beverly Hills-based real estate investment firm Kennedy Wilson.
The $37 billion firm shelled out $237 million to buy Carraway, a complex some 25 miles north of Manhattan, alongside Japanese real estate firms Kenedix and Hulic. The deal comes less than a month after Kennedy Wilson, which manages 24.4 million square feet of industrial, retail and office space across the U.S., the U.K. and Ireland, went private.
“The acquisition extends Kennedy Wilson’s investment platform across the East Coast and expands our investment management platform,” said William McMorrow, the firm’s chair and chief executive, in a news release.
The firm describes the community, built in 2021, as a “Class A property” with a mix of studio, one-bedroom and two-bedroom units alongside roughly 6,400 square feet of ground-floor retail space. Amenities include a pool, fitness center and coworking space, which help “drive strong resident demand and retention,” per the release. Rents at the property have risen more than 5% in the last year.
“Carraway represents a rare opportunity to acquire a high-quality, recently constructed multifamily community in one of the most desirable suburban markets in the New York metropolitan area,” McMorrow said.
Multifamily, affordable housing plays
Coming out of a rate-driven downturn, Kennedy Wilson has worked to narrow its losses and rebound from the significant property value write-downs it saw across its portfolio three years ago. The company finished $38.8 million in the red last year, a steady improvement from 2024 and 88% down from a net loss of $341.8 million in 2023.
In a move firm leaders hoped would unlock savings by eliminating administrative and regulatory burdens, Kennedy Wilson was taken private in mid-June by a consortium led by McMorrow and Toronto-based Fairfax Financial Holdings. The all-cash deal valued the company at $1.65 billion.
Following the delisting, Kennedy Wilson has pushed into multifamily, a sector it also made strides in last fall with the acquisition of 18 properties and 29 development sites as part of the Pennsylvania-based Toll Brothers Apartment Living platform.
It also announced a partnership with Koreatown’s Jamison Properties, an adaptive reuse developer, to turn underused downtown office properties into affordable housing. The first step in the duo’s plan to deliver 4,000 housing units is the conversion of the LA World Trade Center into a 512-unit complex rebranded as “Sky Castle.”
