Despite an uncertain economic landscape, Kayne Anderson Real Estate, the real estate investment arm of Kayne Anderson, is doubling down on what it does best: identifying and capitalizing on durable, needs-based real estate sectors.
With $18 billion in real estate assets under management and a demonstrated track record, the firm sees powerful long-term potential in sectors where demand is driven by demographics, not economic cycles – specifically medical offices, senior housing, and student housing.
“In times of dislocation, we believe that focusing on real estate categories with inelastic demand, constrained supply, and low macroeconomic correlation will continue to produce strong, risk-adjusted returns,” Kayne Anderson said in a statement to The Korea Economic Daily.
Kayne Anderson’s conviction is supported by its consistent performance and recent growth: total firm assets under management (AUM) rose by over $3 billion to nearly $38 billion from Jan. 1, 2024 to June 30, 2025, with its real estate platform growing by approximately $3 billion during the same period.
MEDICAL OFFICES: A RECESSION-RESISTANT CORNERSTONE
As the largest privately held, non-hospital-affiliated owner of medical office assets in the US, Kayne Anderson – alongside its exclusive joint venture partner Remedy Medical Properties – has invested over $11.6 billion in more than 34 million square feet of space across 805 properties in 44 states since 2013 as of June 30.
With America’s 65+ population set to surge 45% by 2050,1 and older adults visiting the doctor three times more often than their younger cohorts, the firm sees continuing demand for outpatient medical care, according to the Organisation for Economic Co-operation and Development (OECD) in February.
“Medical office space is a highly resilient asset class with strong fundamentals and high barriers to entry,” the firm stated, noting that supply shortages continue to push rents upward in key metro areas. These demographic tailwinds position Kayne Anderson to thrive even during market volatility.
The Hacienda at the River, a senior housing property developed by Kayne Anderson Real Estate, in Tucson, Arizona (File photo by Kayne Anderson) SENIOR HOUSING: WHERE DEMOGRAPHIC SHIFTS MEET INVESTMENT STRATEGY
The United States “silver tsunami” has arrived, and Kayne Anderson is well-positioned. The firm has invested $5.4 billion in over 110 private-pay senior housing communities across 25 states, totaling more than 15,000 units as of June 30.
Kayne Anderson focuses exclusively on Class A, private-pay properties with varying levels of acuity, targeting the wealthiest generation in US history – aging baby boomers.
As the oldest boomers reach age 80, a pivotal threshold for senior housing demand, the firm anticipates continued growth.
Stadium House, a student apartment building acquired by Kayne Anderson Real Estate, in Gainesville, Florida (File photo by Kayne Anderson) STUDENT HOUSING: STABLE DEMAND IN A SHIFTING EDUCATION LANDSCAPE
Kayne Anderson has also emerged as a leading investor in purpose-built student housing, having developed or acquired more than $9.0 billion worth of student communities across 31 US states, representing over 78,000 beds at more than 55 universities as of June 30.
By targeting top-tier state universities – known for their affordability, strong traditions, and growing enrollments – the firm seeks to insulate itself from volatility in remote learning or national enrollment trends.
“Enrollment fluctuations don’t matter much when you invest in schools with strong in-state demand and limited housing supply,” said CEO Al Rabil in a recent interview with PERE. “Demand at these institutions continues to outpace supply, and we don’t see that changing.”
Rabil underscored that demand remains firm across all three target subsectors. “These sectors – medical office, senior housing, and student housing – not only outperform in normal times but dramatically outperform in periods of dislocation.”
STRENGTH THROUGH STRATEGY
Kayne Anderson Real Estate’s disciplined focus on demographically driven, recession-resilient sectors reflects its long-term investment thesis: When markets fluctuate, the firm thrives by staying grounded in essential real estate with enduring demand.
As volatility and uncertainty continue to define the global economy, Kayne Anderson remains confident in its ability to deliver strong returns by doing what it has always done – investing where people live, learn, and heal.
