Kayne Anderson Real Estate Partners I, LP (KAREP), a private equity real estate fund launched, has entered into a joint venture with Flagship Investment Group, a Florida-based developer, owner and operator of commercial property.
The nearly $25 million acquisition boasts a five self-storage portfolio in Florida totaling 375,097 in square footage with 3,187 units in prime locations throughout the Orlando and Jacksonville areas including Orange Park, Fleming Island, Clermont and Minneola.
Since December 2007, KAREP has invested primarily in off-campus student housing as part of a strategy to invest in specialized, fragmented real estate sectors, with recession-resistant characteristics, where operational expertise and capital investment can be used to improve value. Through this joint venture with Flagship, the company is able to expand upon its strategy by investing in the self-storage sector and capitalize on similar opportunistic situations to generate value.
“This acquisition is a compelling investment for both Flagship and KAREP due to the excellent location of the properties and the strength of the industry, which has very stable cash flows and low loan default and loss rates," said Chip Headley, president and COO of Flagship.
Flagship Investment Group is a diversified real estate company focused on self-storage, master-planned communities and hospitality.
Kayne Anderson Capital Advisors is a $10 billion investment management firm with more than 25 years of investing experience in the middle markets in the energy, growth capital, real estate and mezzanine debt sectors. The firm has offices in Houston, Los Angeles and New York City.