Kayne Anderson Capital Advisors bolstered its medical building and senior housing holdings last week, acquiring real estate investment trust Sentio Healthcare Properties of Orlando, Fla., for $825 million.
The deal is being run through Kayne Anderson Real Estate Advisors, the Brentwood firm’s real estate subsidiary, which has invested heavily in the medical office and senior living space since 2013. The firm is paying between $14.37 and $15.21 a share for Sentio’s outstanding shares depending on final pricing.
David Selznick, Kayne Anderson Real Estate Advisors’ chief investment officer, said in a statement that the acquisition comes with opportunities to add value to Sentio’s properties.
“The addition of the high-quality Sentio assets further solidifies (Kayne Anderson’s) position as one of the largest owners of healthcare real estate with a strong composition of premier assets,” he said. “This acquisition represents a compelling opportunity for (Kayne Anderson) to create value through property renovations, facility expansions and other operational enhancements.”
Sentio’s property holdings are concentrated on the senior living market, boosting Kayne Anderson’s facility holdings from 24 housing complexes to 52. The deal also nearly doubles the firm’s the total number of units, bringing the tally to 7,492 from 4,800. Kayne Anderson also adds three medical office buildings to its portfolio through the deal, with 197 properties totaling 9.6 million square feet.