Bahrain-based Investcorp has added a pair of regional apartment complexes to its portfolio as part of a $370 million deal that is the largest U.S. real estate purchase it’s completed in a decade.
As part of an 11-property trade with Equus Capital Partners Ltd. involving more than 2,600 units, Investcorp says it bought multifamily rentals in Tampa; Orlando; Raleigh, N.C.; Atlanta; Philadelphia; and St. Louis, Mo.
Equus affiliate Madison Apartment Group will manage the properties on Investcorp’s behalf, the company says. The 11 complexes, which Equus bought between 2013 and 2015, were 95% occupied at the time of the sale.
Commercial real estate brokerage firm Holliday Fenoglio Fowler L.P. both represented Equus in the negotiations and arranged financing for Investcorp, according to a release by the brokerage.
“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,” says Michael Moriarty, Investcorp’s principal in real estate investment, in a statement.
“Each property offers strong existing occupancy levels and we believe also offers the opportunity for value-add renovations,” Moriarty adds.
An Investcorp spokeswoman declined to identify the Tampa properties the company acquired from Equus. Research shows neither is located in Tampa, however.
Instead, the pair of apartment complexes are in Plant City and Winter Haven.
Madison Park Road, a 248-unit complex, was built in 2000. Investcorp bought it for $32.6 million as part of its larger deal, according to Hillsborough County property records. That price represents a 50% premium over the $21.7 million Equus paid in 2014, land records indicate.
Madison Lake Ned, at 4025 Lake Ned Village Circle in Winter Haven, is a 212-unit complex also delivered in 2000. Investcorp allocated $28.25 million of the $370 million total to that transaction, 92% more than Equus had paid.
Over the past year, Investcorp has acquired roughly 7,700 apartment units in the U.S., ranking it among the Top 10 purchasers of multifamily rental projects, according to Real Capital Analytics, a research firm.
Last November, the company spent $311 million to buy six complexes totaling 15,000 units, including some in Tampa. The company also owns the 368-unit Arium Bay Pointe, 247-unit Arium Citrus Park and 4050 Lofts in the Tampa Bay area.