Investcorp pays Equus $370m for 11 new US multifamily properties

Alternatives investor Investcorp has bought 11 new US multifamily properties from Equus Capital Partners for $370m (€326.8m).

Investcorp said the acquisition of the portfolio which totals 2,615 units, is the company’s largest US real estate portfolio acquisition completed in the past decade.

The properties are located in six major metro areas across five states including Orlando, Florida; Tampa, Florida; Raleigh, North Carolina; Atlanta, Georgia; Philadelphia, Pennsylvania; and, St. Louis, Missouri.

Mohammed Alardhi, executive chairman of Investcorp, said as one of the most active investors in US multifamily real estate, Investcorp’s real estate investment business continues to be an important driver of its ambitious long-term global growth strategy on the path to $50bn in managed assets.

Investcorp currently has more than $22.2bn of assets under management.

Investcorp said it has partnered with an affiliate of Equus, a Philadelphia-based vertically integrated real estate fund operator, in this transaction.

Equus’ management affiliate, Madison Apartment Group, will also serve as the on-site property manager for the portfolio.

Michael Moriarty, principal in real estate investment at Investcorp, said the company continues to see significant investment opportunities in US multifamily given it is a ”well-performing, highly liquid asset class that draws upon the current strength of the overall US economy and labour market”.

“Similar to many of our other recent multifamily investments, the assets in this portfolio are appealing because they are located in metro areas that are either key growth markets or population dense areas with new supply constraints.

”Each property offers strong existing occupancy levels and we believe also offers the opportunity for value-add renovations.”

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