NEW YORK CITY — Global asset manager Investcorp, which is based in Bahrain and has its U.S. office in New York City, has acquired 11 multifamily properties totaling 2,615 units across the United States. The sales price was $370 million.
The properties are located throughout six primary markets: Orlando, Tampa, Raleigh, Atlanta, Philadelphia and St. Louis. Madison Apartment Group, an affiliate of the seller, Philadelphia-based Equus Capital Partners, will continue to manage the communities after overseeing capital improvement programs at each property.
The portfolio was approximately 95 percent leased at the time of sale with an average construction date of 1994 and an average unit size of 1,020 square feet. Equus acquired the properties between 2013 and 2015 and collectively spent about $20 million upgrading them.
“The portfolio is positioned to deliver an attractive, stable and predictable cash flow for the new venture with Investcorp, while at the same time the markets continue to support further enhancement opportunities and ability to push rents higher,” says Christopher Locatell, senior vice president and director of dispositions for Equus.
Investcorp executives noted that the deal marked the firm’s largest real estate acquisition in the United States in the last decade, and was appealing for a variety of factors, including occupancy and location.
“We continue to see significant investment opportunities in U.S. multifamily given it is a well-performing, highly liquid asset class that draws upon the current strength of the overall U.S. economy and labor market,” says Michael Moriarty, principal at Investcorp. “The assets are appealing because they are located in metro areas that are either key growth markets or population-dense areas with new supply constraints.”
Moriarty also notes that Investcorp will continue to look for value-add acquisition opportunities within each of the six markets.
Since 1996, Investcorp has acquired more than 600 properties with a combined value of more than $16 billion.
Michael Joseph, Matthew Lawton and Stella Pappas of HFF represented Equus in the transaction. In addition, Mike Tepedino, Mike Gigliotti and Mona Carlton of HFF arranged an undisclosed amount of acquisition financing on behalf of Investcorp.
— Taylor Williams