Kennedy Wilson and Jamison have formed a joint venture to develop 4,000 affordable apartments across Los Angeles, with their first project converting the former World Trade Center building. The announcement came just before California's SB 4 takes effect on July 1, expanding local zoning flexibility for housing development.
The partnership positions two major L.A. players to capitalize on new regulatory tailwinds. Kennedy Wilson brings institutional capital and development expertise across commercial assets, while Jamison brings proven adaptive reuse credentials. L.A. has seen Jamison convert dozens of underutilized office and commercial buildings into housing, making the firm a natural anchor tenant in this venture.
The former World Trade Center site represents the JV's flagship project. Located in downtown L.A., the property offers adaptive reuse potential that avoids lengthy new construction timelines. Converting existing structures reduces permitting friction and construction costs compared to ground-up development, critical factors for affordable housing economics where margins tighten under inclusionary zoning requirements.
The 4,000-unit pipeline signals serious scale. For comparison, major L.A. developers typically deliver 500 to 1,500 units annually. This venture aims to move faster by targeting buildings already zoned for commercial use that can convert to residential under SB 4's expanded provisions.
For buyers, this development adds supply to L.A.'s constrained market, though affordability remains deed-restricted. For sellers with underperforming office buildings, the JV represents a ready buyer with capital. For institutional landlords, Kennedy Wilson's participation signals confidence in long-term hold fundamentals. For tenants, conversion projects typically preserve existing leases during transition, then reset at new rates post-completion.
The timing matters. SB 4 eliminates many local parking requirements and streamlines approval processes for adaptive reuse, removing barriers that previously made conversion deals