Toll Brothers is getting out of the “apartment living” business, selling its vast portfolio of buildings to Kennedy Wilson for $347 million.
The deal brings $5 billion of assets under Kennedy Wilson management, including $2.2 billion in 18 apartment and student housing properties, and $3 billion of assets in 20 apartment and student housing properties Kennedy Wilson will manage for Toll Brothers.
Kennedy Wilson also gets 29 development sites which, if completed, would total
approximately $3.6 billion in capitalization.
“Toll Brothers Apartment Living communities draw on the expertise of their homebuilding roots, resulting in a premier portfolio of Class A assets in top submarkets nationwide,” said Kimberly Byrum, Zonda’s managing principal of multifamily. “With exceptional amenities, design, and branding, these communities are positioned for sustained performance in their markets.
Luxury builder Toll is No. 10 on the Builder 100 list. In 2024, it closed 10,813 homes and posted revenue north of $10 billion.
“We are proud of the value that has been created by our Toll Brothers Apartment Living business, and we are excited for the future of this team with Kennedy Wilson,” said Douglas C. Yearley, Jr., chairman and CEO of Toll Brothers. “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. We are pleased that our Toll Brothers Apartment Living employees have found a new home at Kennedy Wilson.”
Kennedy Wilson will also acquire the Toll Brothers Apartment Living management team. It expects to make offers to all employees of Toll Brothers Apartment Living and anticipates the entire Apartment Living executive team will join Kennedy Wilson to oversee the existing portfolio and further grow the development platform.
In addition, the transaction is expected to create a new long-term relationship between the two companies that paves the way for future investment opportunities across rental and for-sale housing. Under this arrangement, Kennedy Wilson will refer prospective for-sale housing opportunities to Toll Brothers, and Toll Brothers will reciprocate with rental housing opportunities.
“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,” said William McMorrow, Chairman and CEO of Kennedy Wilson.
“This purchase helps create an unparalleled national platform within the rental housing space that totals over 80,000 units we own, finance or manage, and solidifies Kennedy Wilson’s fully integrated capabilities across real estate development, acquisitions, and asset management along with a market-leading housing-focused credit platform.”
