Investcorp Acquires $330M Multifamily Portfolio

NEW YORK – Investcorp has acquired a portfolio of five multifamily properties, comprising 1,854 units, in a transaction totaling $330 million.

Located throughout the suburban markets of Atlanta, GA, Baltimore, MD and Jacksonville, FL, the class B, garden-style apartment properties are currently 96% occupied.

Situated near major transportation and employment hubs, the residential assets feature various amenities, including swimming pools, fitness centers, clubhouses and 24-hour controlled access entry.

The recent acquisition expands the firm’s US multifamily footprint. Upon the transaction, Investcorp’s US multifamily real estate portfolio now comprises more than 14,000 units across 40 properties.

The global provider and manager of alternative investment products additionally recently sold more than $1 billion in US multifamily real estate assets.

Investcorp previously narrowed its strategic focus in 2014, in order to target the resilient sectors of multifamily and industrial real estate. The two sectors currently represent 90% of the firm’s US real estate portfolio.

“Our latest multifamily investments continue our successful strategy of acquiring highly-occupied, cash-flow generating properties in target markets that are supported by favorable economic trends and offer additional upside potential,” states Michael O’Brien, managing director and co-head of North America real estate at Investcorp. “These transactions presented us with an opportunity to acquire five highly-occupied assets in growing, supply constrained markets that we know very well.”

“Looking ahead, we believe that multifamily real estate, and particularly class B, will continue to be a highly sought-after asset class given its ability to offer consistent yields.” Adds O’Brien. “These properties have delivered solid performance through COVID-19 and we look forward to executing on our strategic plan to enhance value creation.”