KKR first invested in Sentio in 2013 with a $150-million equity commitment. “We have been fortunate for the opportunity to support John Mark and his impressive team at Sentio over the last four years, and we are proud of the results,” says KKR member Billy Butcher.

Citigroup Global Markets Inc. and Holliday Fenoglio Fowler L.P. acted as financial advisors to KAREA, Hogan Lovells US LLP acted as corporate legal advisor and Greenberg Traurig LLP acted as real estate legal advisor. For Sentio, Robert A. Stanger & Co., Inc. and UBS Investment Bank acted as financial advisors; Latham & Watkins LLP, Foley & Lardner LLP and DLA Piper acted as legal advisors. Simpson Thacher & Bartlett LLP acted as legal advisor to KKR. The acquisition is expected to close in the third quarter.

BOCA RATON, FL—Kayne Anderson Real Estate Advisors is bolstering its healthcare portfolio with the acquisition of Sentio Healthcare Properties. KAREA will pay $825 million for the KKR-backed, non-listed REIT in an all-cash transaction.

Sentio's portfolio spans 34 properties in 16 states, including both seniors housing communities and medical office buildings. “The addition of the high-quality Sentio assets further solidifies KAREA's position as one of the largest owners of healthcare real estate with a strong composition of premier assets,” says David Selznick, KAREA's CIO. His company's current holdings in the sector include 34 seniors communities totaling 5,554 units and 8.5 million square feet of MOB space across 30 states.

For KAREA, the Sentio deal represents “a compelling opportunity” to create value through property renovations, facility expansions and other operational enhancements, Selznick says. “We are pleased to be building off of the success that Sentio has had with the portfolio and its operators, and believe that this transaction will enable us to continue to generate best-in-class returns for our investors.”

John Mark Ramsey, CEO of the REIT and its external advisor, Sentio Investments, cites the contribution of Sentio's operating partners to the “strong results” his company achieves in the healthcare sector. “This transaction validates the board's goal of optimizing stockholder value by establishing a unique partnership between our operating partners, Sentio Investments, and KKR, an industry leading global investment firm,” he says. “KKR's partnership, along with their industry and capital markets expertise, has been a valuable asset to the company and its stockholders.”

KKR first invested in Sentio in 2013 with a $150-million equity commitment. “We have been fortunate for the opportunity to support John Mark and his impressive team at Sentio over the last four years, and we are proud of the results,” says KKR member Billy Butcher.

Citigroup Global Markets Inc. and Holliday Fenoglio Fowler L.P. acted as financial advisors to KAREA, Hogan Lovells US LLP acted as corporate legal advisor and Greenberg Traurig LLP acted as real estate legal advisor. For Sentio, Robert A. Stanger & Co., Inc. and UBS Investment Bank acted as financial advisors; Latham & Watkins LLP, Foley & Lardner LLP and DLA Piper acted as legal advisors. Simpson Thacher & Bartlett LLP acted as legal advisor to KKR. The acquisition is expected to close in the third quarter.