Investcorp Wraps Up $400M in Apt. JVs

NEW YORK CITY—Investcorp's US-based real estate arm has acquired a portfolio of eight rental apartment properties in separate transactions, the investment manager said Wednesday. Totaling approximately $400 million, the multifamily deals bring Investcorp's real estate acquisitions over the past 12 months to more than $1 billion.

Each of the acquisitions was made through joint ventures with several local and regional operating partners. The eight properties acquired total more than 3.2 million square feet with approximately 3,400 multifamily units.

GlobeSt.com reported last month on Investcorp's JV acquisition of Cherry Creek Club, a 561-unit complex in Denver, for $71 million. Investcorp's partners in the acquisition were TruAmerica Multifamily and Guardian Life Insurance, according to Real Capital Analytics; the seller was Weidner Apartment Homes. The same JV partners paid $50.5 million to acquire the Solis at Flamingo, a 522-unit garden apartment complex in Las Vegas.

In Atlanta, Investcorp and Titan Real Estate Investment Group bought the 494-unit Madison at Vinings Ridge for $75.5 million from Equus Capital Partners. The 642-unit Berkshires at Hoffman Estates, in the Chicago suburb of Schaumburg, IL, traded to Investcorp and Redwood Capital Group. Berkshire Property Partners was the seller in the $86-million sale, according to RCA.

Rounding out the acquisitions was a quartet of garden-style properties in the Dallas/Fort Worth suburbs of Irving and Plano, TX, acquired from American Communities. “In an environment in which the US homeownership rate has dropped to a 50-year low, these acquisitions affirm our confidence in the attractiveness of investing in high-quality multifamily rental properties in major US markets,” says Herb Myers, managing director of real estate investment. “This fact, combined with the solid demographic and employment fundamentals in these areas, should assist in driving the upside potential of these investments.”

Headquartered in Bahrain with US offices in New York City, Investcorp has also been active on the disposition front over the past year. The company traded office properties in Petaluma and Santa Clara, CA in two separate deals for a total of $135 million, and has also has sold multifamily properties in the Houston and Dallas markets; an industrial property in North Haven, CT; and hotels in Pittsburgh and Boston.