Investcorp Turns to MF, Student Housing for $270M

By: Paul Bubny | National |

NEW YORK CITY – Investcorp, which earlier this month made a round of office and retail acquisitions totaling $250 million across the US, has now turned its attention to multifamily and student housing. The investment fund on Monday announced a trio of separate transactions in the Chicago, Austin and Las Vegas metro areas totaling $270 million.

The six assets Investcorp has acquired consist of approximately 3,000 units and have a combined average occupancy rate of approximately 95%. Christopher Hoeffel, managing director in New York City-based Investcorp’s real estate group, says the acquisitions are “consistent with our strategy of targeting high quality assets with what we believe are attractive yields and the potential for near- and long-term upside through operating improvements and renovations.”

Investcorp did not identify the sellers; industry data reveal that the three Chicago-area multifamily assets were acquired for a total of $110 million from a joint venture of MetLife, Redwood Capital Partners and Westdale, which paid about $118 million to acquire them in 2008. They include the 730-unit Woodlands at Crest Hill in Crest Hill, IL; Fountains of Stone Crest, a 400-unit complex in Westmont, IL; and the 384-unit Lakes at Fountain Square in Waukegan, IL.

In the Austin area, Investcorp has picked up two student housing properties totaling 846 units: University Village and University Estates. Both are located in the Riverside submarket about four miles from Austin’s CBD, in close proximity to the University of Texas at Austin as well as several other colleges.

Eagle Crest Apartments in Las Vegas was built in the late 1990s, and is close to several employment centers and amenities. Investcorp says its investment in this 624-unit community provides it with the opportunity to participate in Las Vegas’ improving economy, which has recently started demonstrating growth in population, employment and home values after being among the hardest hit markets in the economic downturn. Since the fourth quarter of 2012, Investcorp has made acquisitions collectively valued at $925 million.

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