Investcorp expands real estate portfolio with acquisition of four residential properties

17 Mar 2015

Investcorp, a leading provider and manager of alternative investment products, today announced that its U.S.-based real estate arm, through separate transactions, has acquired a portfolio of residential properties in the metropolitan areas of Washington, D.C., Orlando, San Diego and Baltimore for approximately $300 million.

The acquisitions continue a highly active period for Investcorp’s real estate group. Over the last twelve months, Investcorp has purchased properties in the U.S. collectively valued at more than $850 million. Since 1996, Investcorp has completed more than 300 property investments totaling more than $11 billion in value.

“We are pleased to enhance our real estate portfolio with the acquisition of these properties, which perfectly align with Investcorp’s strategy of targeting high-quality assets with what we believe to be attractive yields that demonstrate upside potential,” said Brian Kelley, Principal in Investcorp’s real estate group. “These properties are highly occupied and have the potential to offer stable cash flows from strong, diverse, and growing markets.”

Investcorp completed these acquisitions through joint ventures with four different operating partners, each possessing deep knowledge of the local markets as well as operational expertise in managing the assets. Investcorp maintains controlling interests in all of its real estate investments and regularly partners with established national or regional real estate companies who frequently choose to co-invest alongside the Firm.

The four properties acquired total more than 2.1 million square feet with approximately 1,900 multifamily and student housing units. The properties currently have high occupancy rates, with a current average occupancy rate of approximately 96 percent.

The acquired properties are:

Arcadian, Silver Spring, Maryland: This garden style townhome property is located in Montgomery County and part of the Washington, D.C. metropolitan area. The acquisition of Arcadian follows Investcorp’s November 2014 acquisition of Canal Center, a 540,000 square foot Class A office complex in nearby Alexandria, VA.

Orion on Orpington, Orlando, Florida: This Class A 156-unit, 624-bed, student housing property is located in close proximity to the University of Central Florida, the second largest university in the U.S. with approximately 60,000 students, and Valencia College, which has more than 42,000 enrolled students.

Waterleaf Apartment Complex, Vista, California: A 456-unit multifamily apartment complex located in a northern suburb of San Diego, the 17th largest metropolitan area in the U.S. The property provides convenient access to most major North San Diego employment centers and is situated on a 19.9 acre site that includes swimming pools, spas and additional recreational areas.

Fairways at Towson, Baltimore, Maryland: This apartment property features a 15-story high rise building and 35 three-story garden style buildings. Fairways at Towson is located in an upscale submarket of Baltimore-Columbia-Towson, the 20th largest metropolitan area in the U.S. There are more than 15 million square feet of office space within five miles of the property.

As of December 31, 2014 Investcorp’s real estate group had approximately $1.5 billion in assets under management, continuing its focus on commercial, office and residential real estate assets in the 30 largest markets in the U.S.