Investcorp Procures $350M Portfolio

Consistent with the company's strategy of investing in the South and Southwest, the six properties are located in Phoenix, Orlando and Jacksonville, Fla., and offer a combined 2,800 units.

moneyInvestcorp has acquired six properties in Florida and Arizona for $350 million. Collectively, the properties feature more than 2,800 residential units. The acquisitions include Highpoint Club and Montevista at Windermere in Orlando, Fla., Aqua Deerwood in Jacksonville, Fla., and Arcadia Cove, Tuscany Palms and Midtown on Main in Phoenix.

The acquisitions are consistent with Investcorp’s focus on investing in multifamily properties across high-growth metropolitan areas across the Southeast and Southwest.

Combined, Highpoint Club and Montevista at Windermere in Orlando offer 708 units. The communities are located in two different submarkets of the Orlando area.

Inside the area

Metro Orlando is anticipated to witness population and employment growth placing it in the top five growing United States metropolitan areas over the next five years, and is one of only three metro areas to experience the highest year-over-year percentage increase in employment in the U.S. at 3.2 percent as of August 2017.

The Orlando multifamily market has benefited from low vacancy rates and robust rental rate growth over the past several years. Both trends are expected to continue.

Growth trends

The multifamily market in Orlando has benefited from low vacancy rates and robust rental rate growth over the past several years. Both trends are expected to continue.

The 616-unit Aqua Deerwood is a garden-style apartment community in the high-income Southside-Bay Meadows submarket of Jacksonville. Proximity to job centers, higher education and entertainment has helped ensure the submarket’s vigorous growth in recent years.

The apartment community stands across the street from Deerwood Office Park, housing a large array of employers that incude Merrill Lynch, United Healthcare, Fidelity Bank and Florida Blue. Jacksonville is the state’s fourth largest metropolitan area and boasts the 10th fastest growing population in the United States.

Featuring a combined total of 1,486 units, Arcadia Cove, Tuscany Palms and Midtown on Main are a trio of rental properties spread across Phoenix metro area infill locations. Phoenix remains a high-growth market, with affordable living, high-quality transportation infrastructure and a business-friendly environment all helping fuel growth.

The Phoenix-Mesa-Scottsdale metro area has ranged third in the U.S. in job growth over the past several years, a period in which it reached number one population growth.

Strong track record

Over the past 12 months, employment in financial services has expanded by 10,400 jobs, the professional and business services sector by another 9,400 jobs.

As population, job and household growth outstrips new units of supply over the next five years, the Valley of the Sun is on pace to experience among the highest rental growth rates in the country, Investcorp officials report.

Our commitment to U.S. residential real estate continues to serve our clients well,” said Herb Myers, Investcorp’s managing director, real estate investment. “The recently acquired portfolio builds upon our strong track record of investing in multifamily properties in growth markets over the past several years, and [those properties’] ability to deliver consistent yields in a yield-constrained global environment.”