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Investcorp acquires discounted US debt package

The real estate arm of the Middle Eastern investor has bought a senior mortgage loan, a B-note and two mezzanine loans backed by properties in Washington DC, New York and Los Angeles.

The real estate arm of Middle Eastern alternative investment firm, Investcorp, has acquired four pieces of discounted debt backed by commercial properties in Washington DC, New York and Los Angeles.

The New York-based group, which invests in US real estate on behalf of ultra high-net-worth individuals and institutional investors, said it had purchased a senior mortgage loan, a B-Note for a senior mortgage and two mezzanine loans.

The senior mortgage loan was secured by an office in Washington DC, while the two mezzanine loans were secured by Class A office buildings in New York and Los Angeles.

The B-note of a senior mortgage was secured by four self-storage facilities located in the New York boroughs. The self-storage debt was purchased from a commercial bank, while the mezzanine loans were from a private investor.

Financial details were not disclosed although the face value of the mortgages was $170.9 million, Investcorp said.

The loans were purchased through Investcorp’s debt funds, the Investcorp Real Estate Credit Fund and the $108 million Mezzanine Fund I, both of which are now fully deployed.