Kayne Anderson Real Estate Advisors is expanding its healthcare footprint with the purchase of a real estate investment trust in a deal valued at $825 million, the firm said Thursday.
Boca Raton, Florida-based KAREA, the private equity real estate arm of Kayne Anderson Capital Advisors, is buying Sentio Healthcare Properties in an all-cash transaction. The non-listed REIT owns 34 properties, including senior housing and medical office buildings, in 16 states.
KKR, the New York-based private equity firm, backed Sentio with $150 million in 2013 to fund its expansion, according to a statement at the time.
Capital for KAREA’s purchase came from its fourth and fifth opportunistic funds, PERE understands. The firm closed Kayne Anderson Real Estate Partners IV in April 2015 on $1.03 billion, according to PERE data. KAREA launched the fifth vehicle in the series in September with a $1.2 billion target and raised $550 million as of April.
“This acquisition represents a compelling opportunity for KAREA to create value through property renovations, facility expansions and other operational enhancements,” David Selznick, KAREA’s chief investment officer, said in Thursday’s statement. “We are pleased to be building off of the success that Sentio has had with the portfolio and its operators, and believe that this transaction will enable us to continue to generate best-in-class returns for our investors.”
The deal is expected to close in the third quarter.
Sentio’s most recent publicly-available acquisition was the March purchase of the Spring Village at Essex, a 50-unit senior community in Essex, Vermont, for $11.3 million, according to data provider Real Capital Analytics.
Kayne Anderson managed $26 billion in overall assets as of March 31, while KKR oversaw $138 billion as of the third quarter.