Kennedy Wilson and Shimizu Corp. are teaming up to develop a 382-unit multifamily project in Sandy Springs, Georgia, according to a press release from Kennedy Wilson. It’s the first partnership between Beverly Hills, California-headquartered Kennedy Wilson and Tokyo, Japan-based Shimizu Corp.
The $139 million apartment building, named Caldwell, is Kennedy Wilson's inaugural multifamily development in Georgia, per the release. The real estate investment firm and developer bought the 6.9-acre site, which housed a former post office, late last year and started demolition this summer. The project entails redeveloping the office site into a five-story luxury residential community.
John McCullough, president of Kennedy Wilson’s Multifamily Development Group, called the Caldwell project “an exciting milestone.”
"Caldwell offers exceptional long-term fundamentals, driven by strong employment growth and an affluent resident base with limited new multifamily supply,” McCullough said in the release. “By transforming an underused office site into a thoughtfully designed residential community, we are maximizing the utility of the land and creating much-needed housing in one of Atlanta's most desirable metros.”
In emailed comments, McCullough told Multifamily Dive that the company plans to pursue more multifamily developments in Georgia, primarily in the Atlanta metro area.
The new building will include apartments averaging 937 square feet, more than 17,500 square feet of indoor and outdoor amenities and access to Atlanta's major job centers, shops and transportation corridors, according to the release. It is expected to be open to residents in 2028.
“Caldwell represents an exciting opportunity for Shimizu to expand its presence in the U.S. and provide high-quality residential solutions,” Satoshi Arai, president of Shimizu Realty Development U.S.A., said in the release. “We value this inaugural partnership with Kennedy Wilson, leveraging their proven expertise in identifying and capitalizing on the potential of high-growth markets like Sandy Springs.”
McCullough said in an email that Kennedy Wilson would like to continue to collaborate with Shimizu, and “for the time being we are focused on delivering a great return on this deal and we will continue to build the relationship from there.”
Atlanta-based New South Construction will serve as general contractor, according to the release, with Sandy Springs-headquartered Dynamik Design as architect and PEC+ of Peachtree Corners, Georgia, as civil engineer.
Development matters
Kennedy Wilson aims to expand its multifamily platform in high-growth markets with robust long-term fundamentals, per the release. According to the firm, Sandy Springs has seen significantly less new apartment supply in recent years than the Atlanta metropolitan area more broadly, which supports sustained rental demand and the area's long-term investment appeal.
However, development is a tricky business, McCullough previously told Multifamily Dive.
“It takes a lot of work and a fair bit of capital before you are going to break ground. So I’ve never been a big fan of trying to say, ‘Well, this year, we’re just going to target this part of the world, and next year we’ll start somewhere else,’ because it changes so fast,” McCullough said.
McCullough told Multifamily Dive that at the moment, “the capital markets continue to be challenging and of course we have an eye on inflation. Nevertheless, we are still very bullish about the opportunity for [multifamily] throughout the country.”
Kennedy Wilson has been busy recently. In July, it announced a collaboration with Jamison to deliver 4,000 units of affordable housing in Los Angeles via adaptive reuse and new construction.
In February, the real estate investment company announced it was being sold to a consortium led by William McMorrow, the company’s chairman and CEO, as well as other senior executives and Fairfax Financial Holdings Limited. The take-private acquisition closed in June, according to Kennedy Wilson.
Last fall, it also bought the Toll Brothers Apartment Living platform, which included 18 residential properties and 29 sites in various stages of development.
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