Kayne Anderson Real Estate (“KA Real Estate”), the real estate private equity arm of Kayne Anderson Capital Advisors, L.P., and Welltower Inc., a real estate investment trust, jointly announced that KA Real Estate has completed the acquisition of a large healthcare portfolio comprised of medical office buildings and seniors housing properties from Welltower. 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. “We believe KA Real Estate’s operator-oriented investment platform positions us very well to continue to acquire attractive assets and create favorable risk-adjusted returns for our investors.”
“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.”
KA Real Estate will own and operate the Portfolio with their best-in-class operating partners MB Real Estate and Discovery Senior Living. 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.
Forward-Looking Statements and Risk Factors
This press release may contain forward-looking statements. When Welltower uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause Welltower’s actual results to differ materially from Welltower’s expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to, those factors discussed in Welltower’s reports filed from time to time with the Securities and Exchange Commission. Welltower undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.
About Kayne Anderson Real Estate Advisors
Kayne Anderson Real Estate (“KA Real Estate”) is a leading real estate private equity investor in senior housing, medical office, off-campus student housing, and self storage. KA Real Estate manages over $10 billion of real estate AUM (as of 5/31/20) across opportunistic equity, core equity and real estate debt. KA Real Estate is part of Kayne Anderson Capital Advisors, L.P., a $30.5 billion alternative investment management firm (AUM as of 5/31/20) with more than 30 years of successful experience in the real estate, infrastructure, credit, and growth capital sectors.
Welltower Inc., an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The Company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people’s wellness and overall health care experience. Welltower®, a real estate investment trust (“REIT”), owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing, post-acute communities and outpatient medical properties. More information is available at www.welltower.com.