An Investcorp fund has acquired five multifamily properties with 2,228 units in Arizona, Georgia, and Texas for approximately $420 million.
The multifamily communities acquired include:
- The 608-unit Rosemont Dunwoody in Sandy Springs, Georgia;
- The 380-unit Rosemont Brookhollow in Norcross, Georgia;
- The 424-unit Tides on Harwood in North Richland Hills, Texas;
- The 436-unit Tides at Deer Valley in Phoenix; and
- The 380-unit Tides at Paradise Valley in Phoenix.
The acquisition is the latest in a number of transactions in the U.S. residential space this year for Investcorp, a leading global provider and manager of alternative investment products, headquartered in Manama, Bahrain. The firm has completed more than $1 billion in multifamily acquisitions and $1.3 billion in residential sales, including multifamily and student housing, during the past 10 months. According to the firm, this year’s momentum is due to changing real estate dynamics related to the COVID-19 pandemic.
Earlier this year, Investcorp acquired a portfolio of five Class B multifamily properties with 1,854 units in three key suburban markets—Atlanta, Baltimore, and Jacksonville, Florida—for approximately $330 million.
“As one of the largest investors in U.S. 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.”
In addition to Sun Belt markets, Investcorp is looking to expand in state capitals with large universities or other secondary markets.
“The U.S. residential sector has been a key focus for Investcorp through various economic cycles,” said principal Ryan Bassett. “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 U.S. labor force, toward multifamily units due to their flexibility and affordability.”