Since 2007, KA Real Estate has invested in alternative real estate sectors including medical office, high-end seniors housing, off-campus student housing/multifamily and self-storage. Our vertically integrated team brings expertise in all aspects of real estate investing and management to each of our investments, thereby maximizing operating capabilities.
Real Estate
Why Invest in Real Estate at Kayne
With assets under management of over $10 billion, KA Real Estate’s investment objectives are to create strong risk-adjusted returns by focusing on current cash yield and increasing value through cash flow growth, while remaining sensitive to capital preservation
Investment Strategy
The cornerstone of KA Real Estate’s investment strategy is our ability to apply our deep professional real estate experience and extensive network to bring value to fragmented sectors experiencing growth but lacking capital efficiencies and sophisticated operational and investment focus. Our seasoned real estate professionals in acquisitions, development, asset management, design and construction management, marketing, legal, accounting, and operations bring a full complement of skills to each asset in which we invest, enabling us to best manage and operate our assets to create maximum value on exit.
Sectors and Investment Objectives
KA Real Estate focuses on medical office, high-end seniors housing, off-campus student housing/multifamily and self-storage, all of which exhibit strong demographic trends and historical resistance to economic downturns. By targeting investments ranging in size from $25 million to $1 billion+, KA Real Estate also enhances value through asset consolidation and the creation of geographically diverse portfolios.
Sourcing Advantage
- Deep relationships in target sectors enables KA Real Estate to have “first and last look” at a majority of significant deals
- Extensive network of property managers, operating partners, health and hospital systems, and other large managers
- Reputation for quick response, firm commitment, timely execution, and transparency
Financing Advantage
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- Significant borrowing from the country’s top money-center banks, government-sponsored enterprises (“GSEs”) and life companies ensures best-in-class terms on all equity deals; leads to opportunities for debt business
- Strong relationships with lenders and their respective senior executives enable KA Real Estate to achieve best-in-class terms, receive priority execution, and maximize lender allocations – effectively creating tailored lending programs with relationship lenders
Operating Advantage
- Joint venture partnerships with best-in-class operators with extensive experience in each asset class
- Partners invest their own capital in each deal, creating a true alignment of interests
- In-house professionals in law, finance, and design & construction, with expert third-parties for comprehensive due diligence
- Active in-house, hands-on asset management team with broad knowledge and expertise of development and operational issues
Exit Advantage
- Strong, strategic relationships with numerous institutional buyers – REITs, sovereign wealth funds, and asset managers looking to invest programmatically in high quality, fully stabilized the core, healthcare-related real estate portfolios
- Buyer has optionality on KA Real Estate/operating partner remaining in place as asset manager/operator, making the acquisition “plug and play”
Why Invest in Real Estate
Highly fragmented ownership
Barriers to entry – specialized knowledge requirement and operational intensity
Low correlation to the broader economy with strong performance throughout downturns
Strong risk-adjusted cash on cash yields
Aggregation premium for large, stabilized portfolios
