Kayne Anderson and Capstone to Jointly Develop Three Projects

by Katie Sloan

College Station, Texas; Kennesaw, Ga.; and Durham, N.H. — JV to build at three schools.

College Station, Texas; Kennesaw, Ga.; and Durham, N.H.
— Kayne Anderson Real Estate Advisors (KAREA), the private equity real estate arm of Kayne Anderson Capital Advisors, has partnered with Capstone Development Corp., a national developer, owner and operator of both off-campus and on-campus student housing, to develop three student housing projects near Texas A&M University in College Station, Kennesaw State University in Kennesaw and the University of New Hampshire in Durham. The joint venture believes enrollment growth at both Texas A&M and Kennesaw State has provided a need for additional student housing, while the landscape at New Hampshire shows a demand for higher quality, lower cost off-campus student housing in close proximity to the school.

The Texas A&M and New Hampshire projects will be cottage-style communities. The Cottages at College Station, serving Texas A&M, will be a 369-unit, 1,352-bed development built in two phases. Phase I will deliver 829 beds prior to the fall of 2012, while Phase II will deliver 523 beds in time for the 2013-2014 academic year. Meanwhile, The Cottages of Durham, serving New Hampshire, will include 141 units with 619 beds and be delivered by the 2012-2013 academic year.

The Kennesaw State project, The Lofts of Kennesaw, will be more traditional in style and will provide 217 units with 803 beds in time for the 2012-2013 academic year. All three properties will include expansive clubhouses, open green spaces, resort-style pools, state-of-the-art fitness centers, yoga/pilates studios, saunas, steam rooms, game rooms, tanning beds and tennis, volleyball and bocce ball courts.

“Capstone’s development expertise and proven success, coupled with our knowledge of the market landscape, provides a powerful combination of skill sets,” says Al Rabil, president and chief executive officer of Kayne Anderson Real Estate Advisors.

Timothy Bradley of TSB Capital Advisors facilitated the joint venture between Kayne Anderson, which now has a portfolio of 28 student housing properties totaling 13,451 beds, and Capstone.

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