Al Rabil, managing partner of Kayne Anderson Real Estate Partners, never thought he would end up buying a project he developed at a former firm.
But that's what happened last year when Armonk, N.Y.-based Kayne Anderson purchased housing for students attending Virginia Commonwealth University.
Mr. Rabil had developed the project in 2004 at his old firm, RAMZ LLC.
After building the project and obtaining a master lease from the Virginia Commonwealth University, he sold it to an Australian real estate investment trust, ING Real Estate Community Living Group, known as ILF. Last year, the REIT ran into financial problems and started selling its holdings.
“It was a highly motivated seller,” Mr. Rabil said in an interview. “The project still was under the long-term master lease with the Virginia Commonwealth University. The cash flow didn't change.”
So, he bought it. Turns out it was one of just two deals by any real estate investment firm in the student-housing sector last year. — Arleen Jacobius