Toll Brothers is continuing a major strategic pivot, writes Janelle Ward for The Philadelphia Business Journal.
The Fort Washington real estate giant is selling an Atlanta student housing tower for $132 million, exiting the apartment business and doubling down on luxury homebuilding.
The property, known as Kinetic, is a 752-bed multifamily tower located near Georgia Tech in Atlanta’s Midtown neighborhood. The buyer is an entity affiliated with real estate investment firm Kennedy Wilson, which is in the process of acquiring Toll Brothers Apartment Living, the company’s national multifamily platform.
That broader transaction is valued at $347 million and will ultimately shift more than $5 billion in multifamily assets from Toll Brothers to Kennedy Wilson. Along with that comes much of Toll’s in-house apartment development team. Initial closings wrapped earlier this month, with remaining properties expected to close early next year.
Toll Brothers CEO Douglas Yearley Jr. said the move will unlock capital for shareholders while allowing the Fort Washington company to focus on its core homebuilding business and operate as a more asset-light builder.
Completed last year, the Kinetic tower includes 239 units with one- through five-bedroom layouts and amenities such as a sky lounge, fitness center, sauna, and gaming lounge.
To learn more about Toll Brothers’ multifamily exit, visit The Philadelphia Business Journal.
