Kayne Anderson Real Estate Partners I, L.P. Acquires Two Off-Campus Student Housing Properties

ARMONK, N.Y., May 25 /PRNewswire/ -- Kayne Anderson Real Estate Partners I, L.P. (KAREP), a private equity real estate fund investing in specialized real estate sectors, with a primary focus on off-campus student housing, today announced it has invested in two student housing properties within walking distance of the University of Louisville and Texas Tech University, respectively.  These attractive properties reflect KAREP's strategy of acquiring off-campus student housing properties in public university markets with strong enrollment growth and limited on-campus housing supply.

KAREP has invested in The Province at Louisville, Louisville, Kentucky, together with The Edwards Companies in what is the largest student housing transaction completed in nearly two years.  Developed in 2009 by The Edwards Companies, a large Columbus, Ohio developer, owner, and operator of conventional multi-family and off-campus student housing, The Province is a garden-style community of 266 units and 858 beds.  The Province at Louisville was brokered by Kevin Larimer of Hendricks & Partners of Birmingham, Michigan.

25Twenty is a new student housing community of 249 units and 562 beds being developed in Lubbock, Texas together with the Asset Campus Housing, a large operator, developer and owner of student housing based in Houston, Texas.  Construction of the community across Marsha Sharp Highway from the university campus and the football stadium at Texas Tech University has already begun with completion scheduled for July 2011.

Both The Province at Louisville and 25Twenty will feature a wide range amenities for student residents including business centers, media rooms, game rooms, pools, fitness centers, volleyball courts, tanning booths and parking.  Additionally, all units will be fully furnished and include washers and dryers.

"25Twenty and The Province at Louisville are compelling investments for us as they are located in public university markets with solid enrollment growth and strong barriers to entry, two key factors that are in line with the investment strategy of our fund, Kayne Anderson Real Estate Partners I," said Al Rabil, Managing Partner at Kayne Anderson Real Estate Advisors.  "The depth of industry knowledge and experience of our joint venture partners, The Edwards Companies and the Asset Plus Companies, in this specialized niche, provide an extra layer of confidence that the properties will contribute to the overall value of the fund."

About Kayne Anderson Real Estate Advisors

Kayne Anderson Real Estate Advisors (KAREA) is a private equity firm that invests in niche real estate sectors requiring specialized knowledge and skill for success, with a primary focus on off-campus student housing. KAREA is actively seeking student housing real estate assets of 150 units or more in close proximity to large public universities with strong student enrollment growth.   The firm raised $136 million in commitments for its first real estate private equity fund Kayne Anderson Real Estate Partners I, which held its final close on March 31, 2009.  KAREA is part of Kayne Anderson Capital Advisors, L.P., a $9 billion investment management firm with over 25 years successful experience in the energy, growth capital, real estate and mezzanine debt sectors.  For more information, visit www.kaynecapital.com/realestate.

SOURCE Kayne Anderson Real Estate Partners I, L.P.