Investcorp, Bahrain based a leading provider and manager of alternative investment products, announced that its U.S.-based real estate arm, through two separate transactions, has acquired five residential properties in the metropolitan areas of Boca Raton, Florida and Minneapolis, Minnesota for approximately $220 million.
The Boca Raton properties are comprised of three student housing properties in Boca Raton, FL. With 892 beds and a 98 percent occupancy rate, these properties are the only off-campus, purpose-built, student housing facilities in the nearby area. The residential properties located in the suburbs of Minneapolis, MN are comprised of two multifamily apartment properties with 854 units and an average occupancy rate of 95 percent. Minneapolis has the lowest unemployment rate in the U.S. at 2.9%, and has outperformed the national unemployment rate.
As the home ownership rate in the U.S. continues to decline, rental properties are in high demand,” said Mohammed Al-Shroogi, Co-CEO at Investcorp. “All five of these properties are located in major metropolitan areas with strong market fundamentals including solid rent growth and high occupancy rates. We believe the unique Boca Raton properties serve a growing student population in the area, and the Minneapolis multifamily properties have significant upside potential associated with exterior and interior upgrades.”
Investcorp’s total real estate acquisitions in the last twelve months total approximately $1.5 billion. In the last twenty years, Investcorp has completed over 400 property investments totaling more than $13 billion in value. The Firm’s real estate investments span industrial, commercial and residential properties within the top 30 largest markets in the U.S., including the recent acquisition of a prime office building in Washington, D.C., an industrial portfolio in Atlanta and office buildings in the submarkets of Atlanta, San Francisco and Boston.