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Investcorp acquires $420M multifamily portfolio

Investcorp, a leading global provider and manager of alternative investment products, today announced that an Investcorp fund has acquired five new US multifamily properties across Arizona, Texas and Georgia.

The portfolio acquired by the fund includes 2,228 rental units, for an all-in value of approximately $420 million.

The acquisition is the latest in a number of Investcorp transactions in the US residential space this year. It has completed over $1 billion in multifamily acquisitions and $1.3 billion in residential sales, including multifamily and student housing, over the last 10 months.

While Investcorp narrowed its strategic focus to residential and industrial property types in 2014, this year’s momentum is partially due to the opportunities that emerged from the changing real estate dynamics resulting from the Covid-19 pandemic. Today, Investcorp’s current global real estate AUM totals over $7 billion, of which over $3 billion is held in US residential assets. 

“As one of the largest investors in US multifamily real estate, we have continued to execute on attractive opportunities, as seen by our aggressive acquisition and disposition activity over the past year,” said Michael O’Brien, Co-Head of North America Real Estate and Head of Residential Vertical at Investcorp. “We have capitalized on growing markets with favorable economic trends and have the ability to move quickly on new transactions.”

“The US residential sector has been a key focus for Investcorp throughout various economic cycles,” said Ryan Bassett, Principal at Investcorp. “This latest acquisition reflects our effort to take advantage of the real estate trends born from the Covid-19 pandemic, including the gravitation of millennials (the largest generation in the US labor force) towards multifamily units due to their flexibility and affordability.”

Since 1996, Investcorp has acquired more than 900 properties for a total value of more than $20 billion. According to Real Capital Analytics, Investcorp is the third largest cross-border buyer of US real estate, and fourth largest cross-border seller over the full years of 2019 and 2020.

The purchase included two properties in Atlanta; Rosemont Dunwoody, a 608-unit community in Sandy Springs, Ga., and Rosemont Brookhollow, a 380-unit property in Norcross. Two properties are located in Phoenix; the 436 unit Tides at Deer Valley (pictured top), and the 380-unit Tides at Paradise Valley. In Texas, Investcorp acquired the 424-unit Tides on Harwood in North Richland Hills.

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