NEW YORK, N.Y. — Investcorp’s 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 acquired properties include The Arcadian in Silver Spring, Md., a garden-style townhome apartment property; Orion on Orpington in Orlando, Fla., a Class A, 156-unit, 624-bed, student housing property near the University of Central Florida; Waterleaf Apartment Homes in Vista, Calif., a 456-unit apartment complex; and Fairways at Towson in Baltimore, Md., a 15-story apartment building.
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 an average occupancy rate of approximately 96 percent.
“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,” says Brian Kelley, a principal at New York-based Investcorp.
“The properties are highly occupied and have the potential to offer stable cash flows from strong, diverse, and growing markets,” adds Kelley.
Investcorp completed these acquisitions through joint ventures with four different operating partners. Investcorp will maintain controlling interests in all of its real estate investments. The firm regularly partners with established national or regional real estate companies that frequently choose to co-invest alongside the firm.
Over the last 12 months, Investcorp has purchased properties in the U.S. collectively valued at more than $850 million. As of Dec. 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.
Since 1996, Investcorp has completed more than 300 property investments totaling more than $11 billion in value.
— Danielle Everson