A joint venture led by Kennedy Wilson has acquired The Danforth, a 16-story mixed-use residential tower in Seattle, in a $173-million deal. The transaction includes partners Kenedix, Inc. and Hulic Co., Ltd., two Japanese investment firms.

“Given our 30-year history in Japan, we are proud to continue the growth of our investment management platform alongside these two prestigious companies that are aligned with our investment strategy and our focus on delivering quality housing within growing Pacific Northwest markets,” said Kennedy Wilson chairman and chief executive officer William McMorrow. “The Danforth provides an opportunity to acquire a recently built community at a discount to replacement cost within an area experiencing limited new construction and strong absorption due to recent return-to-office initiatives from leading technology employers.”  

The property, a 16-story tower completed in 2018 at 1425 Spring Street, sits at the intersection of Capitol Hill and First Hill. It includes a mix of one-, two-, and three-bedroom apartments - located above a Whole Foods - with amenities such as a fitness center, a rooftop deck, a resident lounge, and a barbeque patio.

Kennedy Wilson, based in Beverly Hills, has a 10 percent interest in the joint venture, and will serve as asset manager on behalf of Kenedix, Inc. and Hulic Co., Ltd.

Other recent investments by Kennedy Wilson in the Seattle area include a 200,000-square-foot industrial facility in Auburn.