Real Estate Debt
Commercial real estate debt & securities investments in targeted sectors including medical office, seniors housing, multifamily/student housing, and self-storage.
Investment Fundamentals
The Kayne Anderson Real Estate Debt platform seeks to achieve strong, risk-adjusted returns and capital preservation, focusing on attractive niches in commercial real estate debt that require specialized knowledge and sourcing advantages.
Our debt team invests primarily in Freddie Mac structured products and direct loan originations secured by assets in Kayne Anderson Real Estate’s sectors of expertise (Multifamily, Student and Seniors Housing, Medical Office, and Self Storage), with flexibility to selectively invest in non-agency CMBS.
Experience & Expertise
- Highly seasoned, cycle-tested senior leadership team with experience rooted in the commercial real estate debt and securities markets
- Active in all market cycles originating loans, investing in Freddie Mac bond issuances and structured products, and buying mispriced Freddie Mac and commercial real estate (“CRE”) bonds
- Ability to provide certainty of execution in short time frames through proprietary market intelligence, thorough underwriting process, and real estate operating expertise
Grand Station Apartments, Miami, FL
Hub Tucson, Tucson, AZ
Sourcing
- Extensive network of partners, sponsors, investors, developers, operators, and money center banks leading to several lending partnerships and off-market opportunities at attractive pricing
- As one of a limited number of Freddie Mac “Select Sponsors1,” Kayne Anderson Real Estate has developed a $10 billion relationship with Freddie Mac as one of its largest borrowers and B-Piece buyers
- 25+ year relationships with investment banks/trading desks to access off-market/direct opportunities on new issue and secondary market CRE securities opportunities
1Kayne Anderson Real Estate has been a Freddie Mac Select sponsor since 2015. The Freddie Mac Select Sponsor program is a highly coveted designation, recognizing sponsors with a successful track record and alignment with Freddie Mac’s mission to provide liquidity, stability, and affordability to the U.S. housing market with an emphasis on securing housing for low- and moderate-income families. Freddie Mac was not compensated for this endorsement and is not a Kayne Anderson Real Estate client. There are no material conflicts of interest that result from Kayne Anderson Real Estate’s relationship with Freddie Mac.
Underwriting
- Conservative, equity-oriented underwriting with each potential investment flowing through a disciplined, multi-tiered evaluation and underwriting process
- Potential investments are evaluated on a loan-by-loan, ground-up basis with a focus on intrinsic value and last dollar of risk
Operating Capabilities
- 100+ person vertically-integrated real estate team with in-house professionals specializing in law, finance, design and construction, acquisitions and asset management, and marketing operations
- Operator-oriented platform and operating partners with extensive experience in each asset class to support front-end due diligence in underwriting and ongoing asset management
Downside Risk Protection
- Debt investments secured by historically recession-resistant assets in the United States that have a low correlation to the broader economy
- Borrowers are required to purchase interest rate protection on floating rate loans to ensure they are still able to service their debt in a rising interest rate environment
- Benefit from Kayne Anderson Real Estate’s sector expertise and operating capabilities should the need arise to take ownership and operate the assets
Our People
We are a vertically integrated team of 100+ professionals across Real Estate Investments, Design and Construction, Legal, Accounting, and Investor Relations.
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