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Investcorp assembles $270m portfolio

The global alternative asset manager has acquired six properties in the Chicago, Austin and Las Vegas markets through separate transactions.

The New York-based real estate arm of global alternative investment manager Investcorp has acquired a portfolio of six residential and student housing properties in the Chicago, Austin and Las Vegas markets for a total of approximately $270 million. The properties, acquired through separate transactions, consist of approximately 3,000 units and have a combined average occupancy rate of about 95 percent.
“These recent residential 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,” said Christopher Hoeffel, managing director of Investcorp’s real estate group, in a statement.
The Chicago area properties include three multifamily communities in the densely populated suburban markets of Waukegan, Westmont and Crest Hill, Illinois. Investcorp purchased the portfolio, which consists of 1,514 total units, from a joint venture between MetLife, Redwood Capital Partners and Westdale Asset Management, according to data provider Real Capital Analytics. The Austin properties include University Village and University Estates, two student housing communities in the city’s Riverside submarket with a combined total of 846 units, or 2,700 beds.  The properties are in close proximity to the University of Texas at Austin, as well as several other colleges with significant student populations. Meanwhile, the Eagle Crest Apartments community in the North Vegas submarket includes 624 units. The Class A property, built on 31 acres in 1997, is valued at approximately $54 million. 
The transactions come on the heels of another large real estate purchase by Investcorp made earlier this month. On November 5, the investment manager announced the acquisition of a portfolio of high-quality office and retail assets in the greater Chicago, Los Angeles, Minneapolis and New York areas valued at $250 million. The properties comprise a total of more than 1.6 million square feet and have a combined occupancy rate of approximately 92 percent.
Since the fourth quarter of 2012, Investcorp’s real estate activities include investments in properties collectively valued at approximately $925 million. The firm currently has more than $4 billion of property and real estate debt funds under management.