Kennedy Wilson and Toll Brothers, Inc. announced Thursday that Kennedy Wilson will acquire Toll Brothers’ Apartment Living platform for $347 million. This landmark apartment deal will significantly boost Kennedy Wilson’s investment management platform and expand its rental housing operations, while enabling Toll Brothers to monetize a large portion of its apartment holdings.

As part of the apartment-focused transaction, Kennedy Wilson will take over general partner interests in 18 apartment and student housing properties totaling $2.2 billion in AUM, along with a development pipeline of 29 additional sites.

The company will also assume management of 20 apartment and student housing communities that will remain with Toll Brothers after closing, representing another $3.0 billion in AUM under Kennedy Wilson’s oversight. Toll Brothers plans to gradually dispose of these apartment assets and fully exit the multifamily development business.

Further strengthening its position, Kennedy Wilson will integrate the Toll Brothers Apartment Living management team, with the full executive leadership expected to join the company and contribute to the continued growth of its apartment platform.