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Companies: Kennedy Wilson and Tokyu Land US Corp.
Investment target: $200 million
Target: Preferred equity and mezzanine real estate investment
Target markets: Multifamily and industrial projects nationwide
Kennedy Wilson and Tokyu Land US Corp., a subsidiary of large Japanese real estate developer Tokyu Land Corp., have launched a new real estate investment platform to provide preferred equity and mezzanine capital for multifamily and industrial sponsors in the U.S., according to a news release.
Kennedy Wilson, which owns or has financed 60,000 rental housing units through its credit platform, and Tokyu will target over $200 million in preferred equity investments and mezzanine loans to sponsors across multifamily and industrial projects nationwide. The platform’s target investment size will typically range between $10 million and $50 million.
“Leveraging our proven success in preferred equity, this venture establishes a strategic platform to significantly scale our U.S. presence,” Ben Cherney, executive vice president of investments for Tokyu Land US Corp., said in the news release.
Each investment within the platform will be approved by both Tokyu, with offices in Los Angeles and New York City, and Kennedy Wilson. The Beverly Hills, California-based investment firm will hold a 10% stake in the venture, manage the investments and earn fees.
“We are pleased to establish this new platform that will build on the success we’ve experienced in our credit platform and expand our involvement across all parts of the capital stack,” said Kennedy Wilson President Matt Windisch in the release.
While Kennedy Wilson — which has holdings in the United States, the United Kingdom and Ireland — and Tokyu Land US Corp. have international footprints, domestic owners are also entering the mezzanine and preferred equity market.
Last October, Denver-based apartment owner Forum Investment Group closed on a $226 million investment vehicle specializing in multifamily private credit.
The strategy, directed at both institutional and advised investors, was launched as a five-year investment vehicle with a target of $100 million to make loans to property owners and developers, Forum Chief Investment Officer Jay Miller told Multifamily Dive.
In September, Atlanta-based owner Cortland announced a programmatic joint venture with private investment firm Declaration Partners Real Estate to invest preferred equity capital in multifamily real estate assets.
