New York—Investcorp’s U.S.-based real estate arm has invested in three multifamily properties in the New York, California and Nevada MSAs for a total purchase price of nearly $400 million. That brings the company’s total residential investment to more than $1.2 billion in the last 18 months.
Mohammed Alardhi, executive chairman of Investcorp, said that the company believes the U.S. economy is poised for significant growth, thus providing good return for the Bahrain-based company and its clients. “We have a long history of investments in the U.S., and our investment in residential properties in the past 18 months demonstrates our belief that the U.S. real estate market provides high-quality investments,” he noted.
The three properties include Atlantic Point, a 795-unit multifamily property in Bellport, N.Y., which is located within the Nassau County-Suffolk County Metro Division. Suffolk County is one of the tightest multifamily housing markets in the United States, with a vacancy rate of 2.9 percent. Given the high cost of land and strict zoning regulations which makes it difficult to build, the area has seen minimal new development since the 1990s.
The Highlands is a 556-unit garden-style multifamily property in Grand Terrace, Calif., in the Riverside-San Bernardino MSA. In this region, the multifamily market leads the nation in rent growth, having logged 5.1 percent in rent growth in 2016. Market-wide vacancy is projected to average 2.4 percent over the next five years.
Villas at Green Valley is a 609-unit garden-style multifamily property in Henderson, Nev., in the Las Vegas MSA. The metro Las Vegas economy has rebounded strongly since the recession, and over the next five years, the metro area is projected to lead the nation in population, employment and real Gross Metropolitan Product growth, all of which are expected to be solid drivers for multifamily demand.