Investcorp Completes Sale of Atlanta, Georgia Student Housing Complex

4 Mar 2021

Investcorp, a leading global provider and manager of alternative investment products, today announced that its US-based real estate team has completed the sale of a 525-bed student housing complex, Signature West Midtown, in Atlanta, Georgia. Since October 2020, Investcorp has sold four student housing assets (2,321 beds) in multiple markets for a combined total of $285 million.

This recent sale activity highlights Investcorp’s robust footprint in the US residential real estate market, where it’s remained a highly active buyer and seller amid the pandemic. Over the past few months, the firm has acquired over $300 million in US multifamily assets across key suburban markets and successfully realized upwards of $1.2 billion in various apartment assets since the onset of Covid-19. Globally, Investcorp has completed $3.0 billion in acquisitions since 2019 and ranks among the top five cross border buyers and sellers of US real estate.

“These transactions demonstrate the continued success of our strategy in the student housing sector and our ability to generate value-add oriented returns on newer buildings in close proximity to major US university campuses,” said Michael O’Brien, Co-Head of Real Estate North America. “Despite market dislocations brought on by the pandemic, we are pleased to have maintained solid operating performance and collections throughout Covid-19. We continue to remain bullish on student housing and look forward to pursuing future opportunities that capture favorable supply/demand dynamics surrounding universities and build upon our 25-year track record.”

Investcorp acquired Signature West in partnership with The Preiss Company in late 2019. The property, which serves students attending Georgia Institute of Technology, provides studio-, 1-, 2-, 3-, 4- and 5-bedroom configurations. The high-quality nature of the complex and exceptional location allowed for a nearly full occupancy and high collections rates throughout the Covid-19 pandemic, ultimately leading to a competitive marketing process.

In 2014, Investcorp narrowed its strategic focus to target what it believes to be the most resilient sectors of real estate, residential and industrial, which currently represent 90% of the firm’s US real estate portfolio. Following this transaction, Investcorp’s US residential real estate portfolio comprises more than 15,000 units across over 40 properties.