Investcorp, the Bahrain-based investment firm, announced that it acquired 11 "multifamily" properties in the United States for a total value of $370m (Dh1.35bn), making it the firm's largest US real estate portfolio acquisition in the past decade.
The 11 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. The portfolio totals 2,615 units.
"We continue to see significant investment opportunities in US multifamily given it is a well-performing, highly liquid asset class that draws upon the current strength of the overall US economy and labour market," Michael Moriarty, principal in real estate investment at Investcorp, said.
We continue to see significant investment opportunities in US multifamily given it is a well-performing, highly liquid asset class that draws upon the current strength of the overall US economy and labour market"
"As one of the most active investors in US 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 $50bn in AuM," Mohammad Al Ardhi, executive chairman of Investcorp, said in a statement.
Investcorp has partnered with an affiliate of Equus Capital Partners, a Philadelphia-based vertically integrated real estate fund operator, for the transaction.
Equus' management affiliate, Madison Apartment Group, will serve as the on-site property manager for the portfolio, the statement added.
The portfolio was 95% leased at the time of the sale. On average the properties were constructed in 1994 and have an average unit size of 1,020 square feet. They are located in diverse, multiple growth markets and submarkets with opportunities for value-add renovations.
Over the last 12 months, Investcorp has ranked as a top-10 buyer of US multifamily units according to Real Capital Analytics, having acquired approximately 7,700 units. Since 1996, Investcorp has acquired more than 600 total properties with a combined value of more than $16bn.