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Investcorp Pays $350M for Multifamily Assets in Florida, Arizona

Herb Myers, managing director real estate investment at Investcorp Herb Myers, managing director real estate investment at Investcorp

NEW YORK CITY—Investcorp has acquired a total of three multifamily properties in Florida and another three in Arizona for approximately $350 million.

The Bahrain-based alternative investment manager reports that its U.S. based real estate arm acquisitions raised Investcorp’s investment in U.S. real estate over the past 18 months to more than $1.8 billion.

Herb Myers, managing director real estate investment at Investcorp, says, “As we continue to focus on the firm’s growth, real estate investing will play an important role. The US multifamily market remains attractive for new investment opportunities. This recently acquired portfolio builds upon our strong track record of investing in multifamily properties in growth markets over the past several years and their ability to deliver consistent yields in a yield-constrained global environment.”

Myers’ assessment of the multifamily market reinforces his views expressed in February when Investcorp announced three acquisitions involving multifamily apartment properties in New York, California and Nevada valued at nearly $400 million.

In connection with its latest purchase deals, Investcorp is now the new owner of Aqua Deerwood, a 616-unit, garden-style, apartment complex located within the Southside/Bay Meadows submarket of Jacksonville.

The firm also announced on Monday its previously reported acquisition of the 360-unit Montevista at Windermere and the 348-unit Highpoint Club in Orlando. In June, Globest.com reported that Investcorp and partner Tru America of Los Angeles acquired the two properties for $98 million. The purchase marked Los Angeles-based TruAmerica’s entry into the Southeast property market.

In Arizona, Investcorp has added three multifamily developments in the Phoenix metro area—Arcadia Cove, Tuscany Palms and Midtown on Main that combined add 1,486 units to the firm’s multifamily portfolio.

Over the past few years, the Phoenix-Mesa-Scottsdale metropolitan area has ranked third in the US for employment growth and number one in population growth. In the past year, financial employment has expanded with the addition of 10,400 jobs, while the professional and business services sector added 9,400 jobs in that market. Investcorp says the Phoenix region was attractive because it is projected in the next five years to experience some of the highest rental rate growth in the country, particularly as population, employment and household growth outpace new units of supply.

 

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