Kayne Anderson Real Estate Advisors: Real Estate Private Equity
Private Investments in Niche Real Estate Assets
Kayne Anderson Real Estate Advisors raised $136 million in commitments for its first real estate private equity fund, which held its final close on March 31, 2009. Our team of real estate professionals, who average over 16 years experience, invests directly in real estate assets, primarily in sectors that require specialized skills and market knowledge, exhibit historically recession-resistant cash flows, contain strong demographic growth and fragmented ownership. We pursue an opportunistic investment approach that seeks to identify “off-market” deals with motivated sellers with underperforming assets or assets that can be transformed through a value-add approach. With a focus on capital preservation and risk-adjusted return, we seek investments that generate immediate cash yields with significant additional growth potential.
We invest principally in off-campus student housing properties located within close proximity to large public university campuses. Our target acquisition size is generally $15 million to $80 million. We prefer to acquire property directly, but consider joint venture opportunities, particularly in niche sectors other than off-campus student housing with experienced operators who have established track records in their sectors.
For more information on Kayne Anderson’s real estate private equity investing, please contact:
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Kayne Anderson Real Estate Private Equity Group
Our Real Estate Private Equity Group manages an investment partnership dedicated to private equity acquisition of real estate assets in niche sectors.
Kayne Anderson Real Estate Investments
- Kayne Anderson Real Estate Partners I $135.9mm (2009)
Focus On Key Niche Real Estate Sectors
The cornerstone of Kayne Anderson’s real estate investment strategy is our focus on key niche sectors experiencing strong demographic growth, historic resistance to economic downturns, and fragmented ownership. Our primary focus is on off-campus student housing opportunities in public university markets underserved by current housing supply with strong student enrollment growth.
Leverage In-House Operating Skills And Market Knowledge
Kayne Anderson’s investment professionals are uniquely qualified to evaluate and understand all aspects of real estate investment, finance, operation and development. Our professionals have an average of over 16 years of real estate experience in all aspects of real estate, including asset management and restructuring. Our prior experience in off-campus student housing also provides us with insights into the sector and an extensive network of solid contacts among owners, managers, brokers, lenders and loan servicers. This combination of skills, experience and market knowledge provides us with a unique ability to respond to opportunities in a timely manner with a careful understanding of the risk-reward parameters.
Opportunistic Approach With Value-Add Growth
Kayne Anderson seeks to identify “off-market” deals with opportunities to maximize value through transformation and/or improvement of underperforming real estate assets. The experience of Kayne Anderson’s investment professionals in property operations and development combined with professional qualifications in engineering, architecture and law provide a unique ability to understand potential asset value and determine the best strategy for realizing each opportunity’s optimal potential.
Risk-Adjusted Returns With Current Cash Yield
Kayne Anderson is primarily focused on capital preservation and risk-adjusted returns with an objective of short-term cash flow yield and future growth through value-add enhancement. Kayne Anderson also seeks to enhance value through strategic geographic diversification and improved operating efficiencies resulting from portfolio consolidation.
