Kennedy Wilson’s Mac Bernie Sees Deal Market Become Increasingly Competitive

At Connect Los Angeles 2026 on May 28, attendees will glean insights from industry heavyweights on the state of the market, the 2028 Olympics, affordable housing and getting deals financed. On the latter subject, our panel of experts includes Mac Bernie, managing director, debt investment group with Kennedy Wilson. Here, he sets the stage by telling Connect CRE what he and his team have seen lately.

Q: A few years ago, borrowers in multifamily and other sectors were likely to refinance their existing properties. Are you and your team seeing more acquisitions now?

A: Compared to a few years ago when rates initially spiked, we are seeing more sales. To give background for my answer, our firm is focused on senior non-recourse multifamily construction debt. We originate roughly $3.5 billion per year across the nation and currently have a $9-billion portfolio. Over the past two years, we’ve seen roughly equal take-outs through sales (1/3), agency / longer term debt (1/3) and bridge (1/3). During 2023, there was a more muted level of sales.

Q: As a lender, are you seeing more competition for deals versus a year ago? What are Kennedy Wilson’s main strengths in competing for deals?

A: We’re seeing more competition as banks, insurance companies, and other alternative lenders come back into the market. We saw the market become more competitive starting on Jan. 1, 2025 – it was an immediate change. It has only become more competitive in 2026. Rates have probably dropped 75 basis points in the past six months.

In terms of our strengths in competing for deals, we have a few. 1) we’re quick to respond; 2) our expertise and longevity in the space gives borrowers confidence in our execution; 3) our unbelievable asset management team, who has been administering loans for over a decade under this platform, have seen nearly every possible issue come up during construction and know how to work with borrowers to come to a solution without jeopardizing the project; 4) our origination team works our loans from initial underwriting, through term sheet, legal documentation, closing due diligence, and funding – we don’t hand the deal off once signed up; we’re their for the borrower the whole time to ensure a smooth closing and are always available post-closing if needed. A very large percentage of our business comes from repeat clients, and that’s the biggest sign we’re doing something right.

Q: Compared to a year or two ago, has your underwriting tightened, loosened or remained the same?

A: From a year or two ago, our underwriting is the same. We’re all former bankers and that ethos of conservative underwriting continues today.

Q: What is Kennedy Wilson’s sweet spot as far as lending transactions are concerned, and are you seeing more of these, especially in Southern California?

A: Our sweet spot is 60-65% LTC with a loan amount around $75 million to $150 million (our average is $100 million). We allow subordinate debt behind us and have relationships with many top providers, which helps fill the equity gap. We’re currently looking at a $100-million-plus deal in Los Angeles with a few subordinate capital groups. We’re a national lender, so we’re not solely focused on Southern California, but we do have healthy exposure here.

On May 28, Connect Los Angeles brings together 600+ high-level owners, investors, developers, brokers, and lenders shaping the region’s market for a full day of insights and networking. Be in the room with decision-makers driving deals across LA, SoCal and the nation—register now: www.connectLA26.com