NEW YORK, Oct. 14, 2015 /PRNewswire/ -- Investcorp, a leading provider and manager of alternative investment products, today announced that its U.S.-based real estate arm, through separate transactions, has acquired a portfolio of eight residential properties in the metropolitan areas of Las Vegas, Denver, Chicago, Atlanta and Dallas for approximately $400 million. These transactions take the firm's total real estate acquisitions for the last 12 months past $1 billion, marking the continuation of a highly active period of investment for Investcorp's real estate group.
All eight properties are well-occupied rental properties situated in major and growing U.S. markets, demonstrating solid rent growth potential. Investcorp intends to add value to the portfolio through renovation and capital expenditure, a strategy which the Firm has successfully executed in previous multifamily investments.
"In an environment in which the U.S. homeownership rate has dropped to a 50-year low, these acquisitions affirm our confidence in the attractiveness of investing in high-quality multifamily rental properties in major U.S. markets. This fact, combined with the solid demographic and employment fundamentals in these areas should assist in driving the upside potential of these investments," said Herb Myers, Managing Director, Real Estate Investment at Investcorp.
Investcorp acquired each of the properties through joint ventures with several local and regional operating partners. The eight properties acquired total more than 3.2 million square feet with approximately 3,400 multifamily units. The current average occupancy rate is approximately 96 percent.
The acquired properties are:
Solis at Flamingo, Las Vegas, Nevada: This garden style, for-rent multifamily property is located in close proximity to three major employment drivers that have spurred population growth in the area: the Las Vegas Strip, the University of Nevada, Las Vegas, and McCarran International Airport. Additionally, there are various major construction projects underway in the surrounding area, totaling approximately $8 billion.
The Reserve at Hoffman Estates, Chicago, Illinois: This property, located within the upscale Hoffman Estates/Schaumberg suburb, is a desirable community in the Chicago Metro area. This area is known for its numerous retail centers and corporate and industrial companies, representing the largest concentration of business outside of the city of Chicago.
Rosemont Vinings Ridge, Atlanta, Georgia: This for-rent apartment complex is located in the growing Cumberland/Galleria submarket in Atlanta, the business capital of the Southeastern region of the U.S. and a global business hub. The area has benefited from over 250 recent corporate locations and over $2 billion in public and private revitalization projects, including a new baseball stadium for the Atlanta Braves. It is also in close proximity to major retail centers, public parks, quality schools as well as major thoroughfares, providing connectivity throughout Atlanta.
American Communities Portfolio, Irving and Plano, Texas: These garden style multifamily apartment properties are located in Irving and Plano, two dynamic and growing Dallas submarkets. Since 2005, the area has seen significant employment growth of over 20 percent, well above the national average, and enjoys a diversified economy in technology, communications, healthcare and manufacturing.
Cherry Creek Club, Denver, Colorado: A for-rent multifamily property located within Denver's thriving and diverse Glendale/Cherry Creek submarket and in close proximity to Denver's two major office areas, Downtown Denver and Southeast Denver, which are home to several high growth employment sectors such as healthcare, IT and energy.
In addition to strong momentum behind acquisitions, significant realizations have also been made in the last twelve months, including the sale of multifamily properties in Houston and Dallas; an industrial property in Connecticut; office buildings in Northern California; and hotels in Pittsburgh and Boston.
Investcorp is a leading provider and manager of alternative investment products and is publicly traded on the Bahrain Bourse (INVCORP). The Investcorp Group has offices in New York, Bahrain, London, Saudi Arabia and Abu Dhabi. Investcorp has three business areas: corporate investment in the U.S., Europe and the Gulf, real estate investment in the U.S and global hedge funds. As at June 30, 2015, the Investcorp Group had $10.6 billion in total assets under management ('AUM'), including assets managed by third party managers where Investcorp receives fees calculated on the basis of AUM. Further information, including our most recent periodic financial statements, which details our assets under management, is available at www.investcorp.com.