NEW YORK — Investcorp, a provider and manager of alternative investment products, has acquired a portfolio of eight residential properties in the metropolitan areas of Las Vegas, Denver, Chicago, Atlanta and Dallas for $400 million. The transactions increase the firm’s total real estate acquisitions for the last 12 months to more than $1 billion.
All eight properties are located in major U.S. markets. Investcorp intends to add value to the portfolio through renovations and capital expenditures.
“In an environment in which the U.S. 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 U.S. markets,” says Herb Myers, managing director of real estate investment at Investcorp. “This fact, combined with the solid demographic and employment fundamentals in these areas should assist in driving the upside potential of these investments.”
Investcorp, which is based in Bahrain with offices in London and New York, acquired each of the properties through joint ventures with several local and regional operating partners. The eight properties acquired total more than 3.2 million square feet across 3,400 multifamily units. The current average occupancy rate is 96 percent.
The acquired properties include:
- Solis at Flamingo, Las Vegas: The garden style, for-rent multifamily property is located near three major employment drivers that have spurred population growth in the area, including the Las Vegas Strip, the University of Nevada at Las Vegas and McCarran International Airport.
- The Reserve at Hoffman Estates, Chicago: The property is located within the Hoffman Estates/Schaumburg suburb of Chicago. The area is known for its numerous retail centers and corporate and industrial companies.
- Rosemont Vinings Ridge, Atlanta: The for-rent apartment complex is located in the Cumberland/Galleria submarket in Atlanta. The area has benefited from over 250 recent corporate locations and over $2 billion in public and private revitalization projects, including a new baseball stadium under construction for the Atlanta Braves. It is also in close proximity to major retail centers, public parks and major thoroughfares.
- American Communities Portfolio, Irving and Plano, Texas: These garden-style apartment properties are located in Irving and Plano, two growing Dallas submarkets. Since 2005, the area has experienced significant employment growth of over 20 percent and enjoys a diversified economy in technology, communications, healthcare and manufacturing.
- Cherry Creek Club, Denver: A for-rent multifamily property located within Denver’s Glendale/Cherry Creek submarket and in close proximity to Denver’s two major office areas, downtown Denver and southeast Denver, which are home to several high-growth employment sectors such as healthcare, IT and energy.
— Haisten Willis