An off-campus student housing tower in Midtown Atlanta has been sold for just over $132 million. The property, known as Kinetic and located at 1025 Spring Street, was acquired by a limited liability company associated with Kennedy Wilson, a California-based investment firm. This information comes from Fulton County deed records and was first reported by the Atlanta Business Chronicle. The seller was Peachtree Kinetic Owner, an entity connected to Toll Brothers, a Pennsylvania-based luxury homebuilder that developed the project.
The transaction is part of a larger deal between Kennedy Wilson and Toll Brothers. In September, Kennedy Wilson announced its agreement to acquire Toll Brothers Apartment Living, which is Toll Brothers’ multifamily business. The total value of this broader deal exceeds $300 million and includes stabilized properties like Kinetic as well as Toll Brothers’ in-house multifamily development team.
Kennedy Wilson Chairman and CEO William McMorrow stated: “the broader transaction will ultimately shift more than $5 billion in assets under management from Toll Brothers to Kennedy Wilson.”
While some multifamily closings were completed on December 5th, Kennedy Wilson disclosed in an SEC filing that the remaining closings have been delayed until early next year.
Toll Brothers Chairman and CEO Douglas Yearley Jr. commented: “the sale unlocks capital for the firm’s stockholders and allows for a renewed focus on the homebuilding side of the business.”
Kinetic stands out within the portfolio due to its recent construction completion last year and proximity to Georgia Tech’s campus. The building consists of 239 units ranging from one- to five-bedroom apartments and houses 752 beds. Its location near Georgia Tech has helped shield it from some challenges facing conventional multifamily housing.
The sale price equates to about $175,000 per bed. Enrollment at Georgia Tech remains steady, contributing to continued demand for student housing in Midtown Atlanta.
Amenities at Kinetic include a sky lounge, fitness center with sauna, and an e-sports gaming lounge.
