Investcorp has made another big play in the U.S. multifamily market. The global investment firm has acquired a portfolio of five apartment communities in three cities for $330 million. Totaling 1,854 units, the properties are in suburban areas of Atlanta, Ga.; Baltimore, Md., and Jacksonville, Fla. A seller was not disclosed by the firm.
The deal ups Bahrain-based Investcorp’s total U.S. multifamily portfolio to more than 14,000 units across about 40 properties, according to the firm. In 2014, Investcorp changed its strategy to focus more closely on the multifamily and industrial real estate sectors, which now represent about 90 percent of the company’s U.S. real estate portfolio.
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All five of the rental communities included in the deal are Class B properties with amenities including swimming pools, fitness centers, and clubhouses, and are located close to major transit and employment hubs.
Investcorp’s Managing Director & Co-Head of North America Real Estate, Michael O’Brien, said in prepared remarks that the properties all have high occupancy rates and are in growing markets with constrained supply. “These properties have delivered solid performance through COVID-19 and we look forward to executing on our strategic plan to enhance value creation,” O’Brien said.
The major purchase comes three months after the firm sold eight multifamily properties for more than $900 million to multiple unnamed buyers. The garden and townhome-style communities were spread across four states—Arizona, California, Florida and New York. The firm has been an active player in the market over the past few years, especially in the Sunbelt and Southeast regions. In one of its biggest purchases in 2019, the firm acquired a five-state portfolio of multifamily properties totaling 2,615 units from Equus Capital Partners for $370 million.
Investcorp is one of the top foreign investors in U.S. real estate. In 2019, the firm made its largest real estate portfolio acquisition ever when it acquired $800 million worth of U.S. industrial properties in two separate deals. Spanning five major markets across the country, the 126 properties were a mix of mostly Class A and Class B industrial property types.