NEW YORK CITY — Investcorp’s U.S.-based real estate arm has acquired a group of office and retail properties in the greater Chicago, Los Angeles, Minneapolis and New York areas valued at $250 million.
“This acquisition adheres to Investcorp's approach of targeting high-quality assets, located in major metropolitan areas characterized by economic growth,” says Herb Myers, managing director in Investcorp's real estate group. “In addition, our approach is to invest in assets that we believe will provide attractive yields soon after they are acquired.”
The properties total more than 1.6 million square feet with an average occupancy rate of approximately 92 percent. “We believe that these properties also present an opportunity to improve their operating and leasing performance over a longer time horizon,” says Myers.
The Chicago area properties include 1603 & 1629 Orrington Ave in Evanston, a northern suburb. The two-building office complex spans 339,000 square feet and benefits from its close proximity to Northwestern University, according to Investcorp.
The company also acquired Mountaingate Plaza in Simi Valley, Calif. Situated on 25 acres in the greater Los Angeles area, the multi-tenant, 246,326-square-foot retail center is anchored by a grocery and drugstore and includes a connecting medical office facility.
The Minneapolis property, Oracle & International Centre, spans 622,000 square feet and includes two Class A and B office towers. The office complex, which is located in the heart of the Minneapolis central business district, is leased by 43 longstanding tenants, including Oracle America.
The three office properties in Long Island are located in Garden City, Mineola and Rockville Centre.
The Long Island Office portfolio includes three office properties with access to mass transportation and roadways connecting to New York City. The multi-tenanted portfolio is leased to 132 tenants and totals 374,000 square feet. Tenants include local law firms, as well as businesses in the healthcare and technology industries.
Bahrain-based Investcorp has been buying into the U.S. real estate market. In December 2012, the company announced the acquisition of five properties for $100 million. Bahrain is an island located west of Saudi Arabia.
The company has acquired more than 200 properties since 1995, with a total market value of approximately $10 billion. Investcorp currently has more than $4 billion of property and debt funds under management.
Investcorp is a provider and manager of alternative investment products. The company has offices in New York, London, Bahrain, Saudi Arabia and Abu Dhabi. Investcorp has three business areas: corporate investment in the U.S., Europe and the Gulf; real estate investment in the U.S.; and global hedge funds.