Kayne Anderson Real Estate, the real estate private equity arm of Kayne Anderson Capital Advisors LP, has closed its sixth opportunistic equity fund with $2.75 billion in capital commitments that it intends to invest in student housing, senior housing and medical office assets.
The fund, Kayne Real Estate Partners VI LP, significantly surpassed its original $2 billion goal and is the largest fund raised by Kayne Anderson Capital Advisors to date. It received strong support from existing investors as well as significant interest from a diverse base of new investors.
Pensions that have announced investments in the fund include: Teachers’ Retirement System of Louisiana; Baltimore City Fire & Police Employees’ Retirement System; New York State Common Retirement Fund; and Nebraska Investment Council, Lincoln, on behalf of the Omaha School Employees’ Retirement System.
The investor cited the combination of an aging population and accelerating enrollments indicating strong growth in each asset class as well as the firm’s own operator-oriented platform, sourcing network and strong financing and lending relationships for its focus on those categories. KA Real Estate also said it will work with longtime partners to meet their sector-specific real estate needs as the sectors evolve. The firm noted it is working closely with several industry-leading companies and developers to provide state-of-the-art medical offices, innovative, amenity-rich student housing communities and wellness-focused senior housing properties.
Al Rabil, CEO of Kayne Anderson Capital Advisors and co-founder & CEO of Kayne Anderson Real Estate, said in a prepared statement the support from new and existing investors is a testament to the investment firm’s long-term strategy, continued outperformance and commitment to the core alternative sectors where it has knowledge and operational expertise.
With the closing of KAREP VI, KA Real Estate has completed more than $23 billion of gross investments across its equity and debt strategies. The firm has invested in approximately 17,400 senior housing units; 50,000 student housing beds; 25 million square feet of medical office space and more than 9,000 loans secured by assets across the target sectors, including two million multifamily units.
As of Sept. 30, KA Real Estate manages more than $13.2 billion of real estate assets under management across opportunistic equity, core equity and real estate debt.
Some of KA Real Estate’s big transactions include the November 2017 purchase of Leverich Towers, a 16-story, 310,000-square-foot residential building from the Jehovah’s Witnesses in Brooklyn, N.Y. KA Real Estate transformed the former hotel at 21 Clark Street into The Watermark at Brooklyn Heights, a 275-unit independent, assisted living and memory care rental community.
Also in 2017, KA Real Estate acquired Sentio Healthcare Properties for $825 million. At the time, Sentio was the 27th largest owner of senior housing in the nation.