Investcorp acquires diverse real estate assets in high-growth markets . . .

16 Sep 2014

Investcorp, a leading provider and manager of alternative investment products with more than $11 billion of assets under management, announced today that its U.S.-based real estate arm, through separate transactions, has acquired a portfolio of office and industrial properties in Durham, NC, Seattle, WA and Jacksonville, FL for approximately $250 million.

“These properties provide significant diversification across product types and tenants and are located in fast-growing markets with strong demand generators,” said Ryan Bassett, Principal in Investcorp’s Real Estate Group. “We believe that the portfolio is already well-positioned with stable cash flows, and with additional leasing improvements, we think these assets demonstrate good upside potential as the U.S. economy continues to recover.”

Combined, the properties acquired consist of nearly 2.2 million square feet and have an average occupancy rate of 87 percent.

Meridian Corporate Center, Durham, North Carolina: This Class A corporate office park is adjacent to the globally renowned Research Triangle Park (RTP), one of the most dynamic and prominent research parks in the world. The property comprises nine buildings and includes a diverse mix of tenants and products that range from Class A midrise office assets to single story R&D. The property’s asset mix is well-positioned to attract tenants in the medical, life sciences, technology and engineering industries, which are all driving forces behind Raleigh’s fast-expanding population. This acquisition follows Investcorp’s 2012 acquisition of three properties in the Raleigh market, which was recently named by Forbes as the fastest growing city in the U.S.

Highlands Campus Tech Centre, Bothell, Washington: This three-building campus consists of Class A office and flex space constructed in 1999 and is situated on Seattle’s desirable Eastside. The campus is occupied by a diverse mix of tenants and is well-occupied. The economy in the Seattle metro area is strong and benefitting from job and income growth generated by the technology, software, healthcare, aerospace and life sciences sectors.

Flagler Center, Jacksonville, Florida: This 12-building portfolio is highly diversified across tenants and product types, including a mix of multi-story and single-story Class A office buildings as well as bulk industrial buildings. Built between 1997 and 2008, this portfolio contains some of the newest commercial real estate assets in Jacksonville.

As of June 30, 2014 Investcorp’s real estate group had approximately $1.4 billion in assets under management. Investcorp deployed $312 million in real estate investments in the fiscal year ending June 30, 2014, continuing its focus on commercial, office and residential real estate assets in the top 30 largest markets in the U.S.