LEXINGTON, KY-Kayne Anderson Real Estate Advisors LLC, based in New York City, has purchased the 228-unit Angliana student housing complex. The 740-bed, off-campus property is located near the University of Kentucky.

Orlando, FL-based Progressive Development Group sold the property, which includes amenities such as a pool, multi-screen viewing center, tanning beds and a parking garage. An adjoining property is being converted from industrial use into a student entertainment complex complete with movie theater, bowling alley, restaurants, shopping and a pedestrian bridge to the UK campus.

Al Rabil, CEO of Kayne, tells GlobeSt.com the complex was  perfect purchase because of the constrained local market, where the university of about 26,000 students only provides housing for the freshman. “We only invest in properties around the top schools with at least 15,000 students, in housing-constrained markets,” Rabil says. “This university is projected to grow to about 33,000 students in the next five years. We think it’s an extremely well-positioned asset.”

His firm has 23 student housing properties, including four others in Kentucky, but this is the first site for the company near UK. Student housing, he says, saw a slight hit during the downturn, but occupancy and rental growth have continued strong. “There’s too much vacant retail space, too much office space and too much industrial space out there – but there’s not enough student housing space,” Rabil says.

His firm also owns two multifamily properties totaling 571 units, and 11 self-storage properties. Kevin Larimer with Hendricks & Partners brokered the Angliana deal.