25 Nov 2013
Investcorp, a leading provider and manager of alternative investment products, announced today that its US-based real estate arm acquired, through separate transactions, a portfolio of residential properties in the greater metropolitan areas of Chicago, Austin and Las Vegas. The properties were acquired for total pricing of approximately $270 million. These transactions follow Investcorp’s recent announcement of its acquisition of a group of high quality office and retail properties valued at $250 million.
“These recent residential acquisitions are consistent with our strategy of targeting high quality assets with what we believe are attractive yields and the potential for near- and long-term upside through operating improvements and renovations,” said Christopher Hoeffel, managing director in Investcorp’s real estate group.
“These properties not only have high occupancy rates but, also, are located near major employment centers in areas with solid economic fundamentals,” said Brian Kelley, a Principal within the group.
Since the fourth quarter of 2012, Investcorp’s activities include investments in properties collectively valued at approximately $925 million. Investcorp currently has more than $4 billion of property and real estate debt funds under management.
The properties acquired consist of approximately 3,000 units and have a combined average occupancy rate of approximately 95 percent.
University Village & University Estates, Austin, Texas: These two student housing communities have a combined total of 846 units or 2,700 beds and are located in the Riverside submarket, approximately 4 miles from Austin’s Central Business District. The properties are in close proximity to the University of Texas at Austin, as well as several other colleges with significant student populations. Austin is consistently ranked as one of the fastest growing cities in the U.S. in terms of both economic and population growth.
Eagle Crest Apartments, Las Vegas, Nevada: Built in the late 1990s, this Class A asset is close to several employment centers and amenities. The investment in this 624-unit community provides Investcorp the opportunity to participate in Las Vegas’ improving economy, which has recently started demonstrating growth in population, employment, and home values following several years of economic downturn.
Chicago Multi-Family Portfolio (Waukegan, Westmont and Crest Hill) Illinois: This multi-family portfolio consists of 1,514 units and is located in three densely populated suburban markets of Chicago with limited capacity for new supply. Within close proximity to some of the most significant employers in the area and in strong school districts, Investcorp believes these markets are well positioned to perform strongly.