Kayne Anderson Real Estate (KA Real Estate), the real estate private equity arm of Kayne Anderson Capital Advisors, L.P, has completed the acquisition of a large healthcare portfolio comprised of medical office buildings and seniors housing properties from Welltower, a real estate investment trust.
Weltower said in a press release, the portfolio consists of 34 properties, including 27 medical office buildings across the U.S. and seven seniors housing communities located in Florida.
“This transaction was a direct result of the long-standing strategic relationship between KA Real Estate and Welltower that achieved a mutually beneficial outcome. This portfolio is a very compelling addition to our platform – institutional quality medical office buildings with long duration leases and seniors housing assets with strong current cash flow and near-term value enhancements through significant capital improvements,” said David Selznick, Chief Investment Officer of KA Real Estate.
“The rapid completion of this transaction with our long-time industry collaborators, KA Real Estate, is indicative of the strong demand for quality seniors housing and medical office building assets,” said Shankh Mitra, Vice Chair, CIO and COO of Welltower.
“Dave and his team were a delight to work with and they executed perfectly without hesitation during a very uncertain time. For Welltower, the transaction significantly enhances our liquidity profile, not only affording us increased flexibility to navigate the ongoing challenges posed by the COVID-19 pandemic, but also allows us to consider opportunistic capital deployment. We look forward to working with our partners at KA Real Estate on future transactions.”
Chad Lavender and Ryan Maconachy of Newmark Knight Frank acted as advisors for Welltower on the transaction. Additionally, Wells Fargo Bank financed the senior housing assets through its Freddie Mac Seller Servicer business, and Capital One Bank NA led the financing syndicate for medical office assets.