  We have studied the $\gamma p \to K^0 \Sigma^+$ reaction in the energy region
around the $K^* \Lambda$ and $K^* \Sigma$ thresholds, where the CBELSA/TAPS
cross section shows a sudden drop and the differential cross section
experiences a transition from a forward-peaked distribution to a flat one. Our
coupled channel model incorporates the dynamics of the vector meson-baryon
interaction which is obtained from the hidden gauge formalism. We find that the
cross section in this energy region results from a delicate interference
between amplitudes having $K^* \Lambda$ and $K^*\Sigma$ intermediate states.
The sharp downfall is dictated by the presence of a nearby $N^*$ resonance
produced by our model, a feature that we have employed to predict its
properties. We also show results for the complementary $\gamma n \to K^0
\Sigma^0$ reaction, the measurement of which would test the mechanism proposed
in this work.

Nuclear Theory