Kayne Anderson Real Estate Advisors LLC (KAREA), the private equity real estate practice of Kayne Anderson Capital Advisors investing in specialized real estate sectors, and Flagship Investment Group, a Florida-based developer, owner and operator of commercial property, have together acquired a portfolio of six operating self-storage facilities totaling 3,803 units in California's Central Valley Region.
The acquisition consists of bank-owned assets, which acquired the properties through foreclosure. KAREA, which focuses on recession-resistant, specialized, fragmented real estate sectors, primarily invests in off-campus student housing. Through its partnership with Flagship, KAREA is able to expand upon its niche market strategy to take advantage of opportunistic situations in the self-storage sector and other non-core real estate sectors.
"This acquisition builds on our strategic partnership with Flagship and leverages our combined expertise with carefully evaluated market conditions, to add value in a well-rounded portfolio of niche real estate to investors," said Al Rabil, managing partner.
The properties are all located in the cities of Ceres, Elk Grove, Escalon, Riverbank, Soulsbyville and Stockton. "There are a number of key areas where Flagship will initiate operational improvements, including revamped marketing initiatives and updated security systems," said CEO Ted Bolin.
KAREA and Flagship first teamed up in October 2010 to purchase a 375,097-square-foot five-property self-storage portfolio in greater Orlando and Jacksonville, Fla.