Kayne Anderson Closes $750M Fund

ARMONK, NY-Kayne Anderson Real Estate Advisors, based here, said Tuesday it had closed its third fund, Kayne Anderson Real Estate Partners III, at $750 million. The fund was significantly oversubscribed, exceeding its initial target of $700 million, and closed at its $750 million hard cap within five months of its launch, according to a release from KAREA.

The fund's investor base includes a diverse mix of institutional investors, foundations, family offices and high-net worth individuals. “We're very grateful for the strong support we've received from our investors and our partners at Kayne Anderson Capital Advisors,” Al Rabil, KAREA's managing partner and CEO, says in a release. He adds that the strong response to the fund, and the company's ability to raise it so quickly, “underscores investors' confidence in our team and strategy.”

This past Friday, KAREA added to its stable of student housing assets, acquiring a 406-unit group of properties comprised of three adjacent apartment buildings and a 746-space parking garage near St. Louis University. KAREA did not disclose the purchase price; however, GlobeSt.com last week reported that the St. Louis Post-Dispatch identifed the sellers as local developers Amy and Amrit Gill, who sold the portfolio for $68.5 million, within KAREA's range of $15-million to $80-million deals.

In all, KAREA's current portfolio includes approximately 16,000 student housing beds in 5,400 units, 444 conventional multifamily units and 15,065 self-storage units.  This past December, American Campus Communities Inc. closed on its $862.8-million acquisition of a 19-property student housing portfolio from KAREA.