Kennedy Wilson Acquires Toll Brothers Apartment Living Platform in $347M Deal, Boosting AUM by $5B+

09/18/2025 – 06:05 AM

• Kennedy Wilson to acquire Toll Brothers’ interests in a portfolio of stabilized and in-development apartment and student housing properties for $347 million

• Transaction will bring over $5 billion of assets under Kennedy Wilson management, including $2.2 billion of AUM in 18 apartment and student housing properties that Kennedy Wilson will acquire as part of the transaction, and $3.0 billion of AUM in 20 apartment and student housing properties that Kennedy Wilson will manage on behalf of Toll Brothers

• Kennedy Wilson to acquire a pipeline of 29 development sites which, if completed, would total approximately $3.6 billion in capitalization

BEVERLY HILLS, Calif. & FORT WASHINGTON, Pa. – Kennedy Wilson (NYSE: KW), the global real estate investment firm, and Toll Brothers, Inc. (NYSE: TOL), a prominent luxury home builder, today announced a definitive agreement for Kennedy Wilson to acquire Toll Brothers’ Apartment Living platform. The deal, valued at $347 million, encompasses Toll Brothers’ expert in-house development team and its interests in a diverse portfolio of both completed and in-development multifamily properties. This strategic acquisition is poised to significantly expand Kennedy Wilson’s investment management platform and bolster its capabilities in the rental housing sector. The transaction is anticipated to close in October 2025, pending customary closing conditions.

The deal’s structure provides Kennedy Wilson immediate scale and expertise. Kennedy Wilson will obtain Toll Brothers’ general partner stakes in 18 apartment and student housing assets, representing $2.2 billion in Assets Under Management (AUM). Furthermore, the acquisition includes a robust pipeline of 29 development sites, potentially representing $3.6 billion in total invested capital upon completion. Kennedy Wilson will assume construction management responsibilities for these projects. Beyond the outright acquisition, Kennedy Wilson will also manage 20 apartment and student housing properties for Toll Brothers, adding another $3.0 billion to Kennedy Wilson’s AUM. Toll Brothers intends to dispose of these remaining assets over time, exiting the multifamily development space entirely.

Crucially, the transaction includes the acquisition of the Toll Brothers Apartment Living management team. Kennedy Wilson plans to extend offers to all employees within this division, with expectations that the entire executive team will transition to Kennedy Wilson. This experienced team will oversee the existing portfolio and spearhead future growth of the development platform, ensuring continuity and expertise.

Analysts suggest the acquisition is a strategic win for both companies. For Kennedy Wilson, it represents a rapid expansion into the high-demand rental housing market, adding a significant portfolio and development pipeline at once. This move aligns with broader trends of institutional investment in multifamily housing driven by demographic shifts and affordability challenges in the for-sale housing market. For Toll Brothers, the divestiture allows them to focus capital on their core luxury homebuilding business, a move that could be seen favorably by investors seeking streamlined operations and higher returns on invested capital in their primary sector.

The deal also establishes a long-term strategic partnership between the two companies. Kennedy Wilson will refer potential for-sale housing opportunities to Toll Brothers, while Toll Brothers will reciprocate with rental housing opportunities. This collaborative arrangement could lead to a mutually beneficial deal flow pipeline, maximizing each company’s reach and market insights.

Kennedy Wilson will fund the acquisition through a combination of existing partner capital and an initial investment of approximately $90 million in the acquired interests, while assuming Toll Brothers’ general partner role in the acquired assets This transaction significantly increases the scale of Kennedy Wilson’s investment management platform, signaling a strong commitment to the rental housing market.

William McMorrow, Chairman and CEO of Kennedy Wilson, highlighted the importance of the deal, stating, “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. 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.”

Douglas C. Yearley, Jr., Chairman and CEO of Toll Brothers, echoed this sentiment, commenting, “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. 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.”

J.P. Morgan Securities LLC served as the exclusive financial advisor to Kennedy Wilson, with legal counsel provided by Latham & Watkins. Goldman Sachs & Co. LLC and Vestra Advisors acted as financial advisors to Toll Brothers, with Fried, Frank, Harris, Shriver & Jacobson LLP serving as their legal counsel.

About Kennedy Wilson

Kennedy Wilson (NYSE: KW) is a leading real estate investment company with $30 billion of assets under management in high growth markets across the United States, the UK and Ireland. Drawing on decades of experience, its relationship-oriented team excels at identifying opportunities and building value through market cycles, closing more than $60 billion in total transactions across the property spectrum since going public in 2009. Kennedy Wilson owns, operates, and builds real estate within its high-quality, core real estate portfolio and through its investment management platform, where the company targets opportunistic equity and debt investments alongside partners. For further information, please visit www.kennedywilson.com.

About Toll Brothers

Toll Brothers, Inc., a Fortune 500 Company, is the nation’s leading builder of luxury homes. The Company was founded 58 years ago in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange under the symbol “TOL.” The Company serves first-time, move-up, empty-nester, active-adult, and second-home buyers, as well as urban and suburban renters. Toll Brothers builds in over 60 markets in 24 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Indiana, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington, as well as in the District of Columbia. The Company operates its own architectural, engineering, mortgage, title, land development, smart home technology, and landscape subsidiaries. The Company also develops master-planned and golf course communities as well as operates its own lumber distribution, house component assembly, and manufacturing operations.

Toll Brothers has been one of Fortune magazine’s World’s Most Admired Companies™ for 10+ years in a row, and in 2024 the Company’s Chairman and CEO Douglas C. Yearley, Jr. was named one of 25 Top CEOs by Barron’s magazine. Toll Brothers has also been named Builder of the Year by Builder magazine and is the first two-time recipient of Builder of the Year from Professional Builder magazine. For more information visit TollBrothers.com.

From Fortune, ©2025 Fortune Media IP Limited. All rights reserved. Used under license.

ABOUT TOLL BROTHERS APARTMENT LIVING^®

Toll Brothers Apartment Living^® is the apartment development division of Toll Brothers, Inc. (NYSE: TOL), an award-winning Fortune 500 Company, and the nation’s leading builder of luxury homes. Toll Brothers Apartment Living brings the same quality, luxury, and service for which Toll Brothers is known to its exceptional rental and mixed-use communities in select markets, including Atlanta, Boston, Dallas, Los Angeles, New York, Philadelphia, Phoenix, and Washington, DC. Toll Brothers Apartment Living communities combine the energy of vibrant locations with unparalleled amenities, resident services, and the design and expertise of America’s Luxury Home Builder^®. In 2024, Toll Brothers Apartment Living was named to the National Multifamily Housing Council’s Top 25 Largest Developers list, the fifth year it has been so recognized. The firm has completed over 10,000 units nationally, with more than 18,000 units in production.

For more information visit TollBrothersApartmentLiving.com.

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Source: Kennedy Wilson