In its largest U.S. real estate portfolio acquisition of the last decade, Investcorp has acquired 11 new U.S. multifamily properties totaling 2,615 units for a combined price of approximately $370 million.
“This diversified acquisition marks a very exciting milestone for our real estate investment team,” said Mohammed Alardhi, executive chairman of Investcorp. “As one of the most active investors in U.S. multifamily real estate, our real estate investment business continues to be an important driver of our ambitious long-term global growth strategy on the path to $50 billion in AUM [assets under management].”
The 11 properties in this portfolio are located in major U.S. metro areas in which Investcorp made previous acquisitions. The properties are located in six major metro areas across five states including Orlando, Florida; Tampa, Florida; Raleigh, North Carolina; Atlanta, Georgia; Philadelphia, Pennsylvania; and St. Louis, Missouri.
Investcorp partnered with an affiliate of Equus Capital Partners, Ltd., a Philadelphia-based vertically integrated real estate fund operator, in the transaction. Equus’ management affiliate, Madison Apartment Group, will serve as the on-site property manager for the portfolio.
“We continue to see significant investment opportunities in U.S. multifamily given it is a well-performing, highly liquid asset class that draws upon the current strength of the overall U.S. economy and labor market,” said Michael Moriarty, principal in real estate investment at Investcorp. “Similar to many of our other recent multifamily investments, the assets in this portfolio are appealing because they are located in metro areas that are either key growth markets or population dense areas with new supply constraints. Each property offers strong existing occupancy levels and we believe also offers the opportunity for value-add renovations.”