NEW YORK CITY — Investcorp has expanded its real estate holdings with debt and equity investments in six office properties in Durham, North Carolina, Frisco, Texas and Denver. The combined properties total value exceeds $140 million.
“This portfolio adds to our growing mix of investments selected for their strong tenant histories, locations in economically flourishing metropolitan communities and attractive ‘going in’ projected cash yields,” says Herb Myers, managing director of New York City-based Investcorp’s real estate group. “The investment in properties in these cities is consistent with our theme of focusing on metropolitan areas with demand drivers from technology, healthcare, energy and education.”
The investments include two equity acquisitions and one debt financing investment. In Durham, the company purchased three buildings in Keystone Office Park and in Frisco it acquired one property in the Duke Bridges office park. The firm also originated a mezzanine loan secured by two office properties located in Denver. The properties, which total more than 900,000 square feet, are approximately 95 percent occupied. Tenants include the National Institute of Health in Durham, Oracle in Frisco and BakerHostetler in Denver.
“Office properties in growth markets with strong demand generators are on the rebound, and can be purchased at better valuations than similar properties in major gateway cities,” says Christopher Hoeffel, managing director of Investcorp’s real estate group. “Rooted in our value-oriented investment approach, we also see significant opportunities for high-quality, performing debt investments that can be acquired or originated at attractive yields.”
Investcorp is a leading provider and manager of alternative investment products. As of June 30, 2012, the company had $11.5 billion in assets under management.
— Savannah Duncan