Investcorp acquires two US office portfolios

The global investment firm has purchased 16 properties valued at roughly $120 million in the greater Houston and Chicago metropolitan areas.

Global alternative investment manager Investcorp has acquired two portfolios comprised of 16 core office properties in the greater Houston and Chicago metropolitan areas. According to a statement issued by the firm, which has offices in New York, London, and Bahrain, the combined 900,000-square-foot portfolio is valued at approximately $120 million.

The two acquisitions include 11 properties at the Oak Creek Center located in suburban Chicago’s East-West corridor and five properties known as Pin Oak Park in Houston’s West Loop submarket. The properties, with a combined occupancy rate of approximately 90 percent, are leased to a diverse roster of tenants, many of whom are in the healthcare industry.  

These transactions are in-step with Investcorp’s strategy of seeking stable high-quality, cash-flowing assets in close proximity to major economic centers. Both submarkets are high-income, densely populated areas, with limited new real estate supply or development.

“We selected these two portfolios as a result of an existing tenant base affiliated with the growing healthcare industry,” said Herb Myers, managing director at Investcorp. “If appropriate, we may seek additional healthcare tenants for these properties.”

Investcorp has partnered with two operating partners for these transactions. In the case of Oak Creek Center, the firm has partnered with Chicago-based Golub and Company, with whom Investcorp has entered into previous transactions. For Pin Oak Park, Investcorp has teamed up with Houston-based Griffin Partners. 

Last year, among other transactions, Investcorp acquired three office properties in Raleigh, North Carolina and one office property in Dallas. Tenants in those properties include the National Institute of Health in Raleigh and Oracle Corporation in Dallas. Investcorp also has been active in the multifamily market in the Texas metropolitan areas of Austin, Dallas and Houston, having acquired nine multifamily properties in these cities over the last 12 months.