Investcorp moves into US student housing: $220M to acquire Florida and Minnesota properties
The new acquisition will serve as housing for Florida Atlantic University, Palm Beach State College and Lynn University students. (Wikimedia Commons)
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Investcorp, a leading provider and manager of alternative investment products, said its US-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 $220 million.
The acquisitions are consistent with Investcorp’s strategy to invest in desirable, high quality properties located in high demand markets providing attractive cash yields, said a statement from the Bahrain-based company.
The Boca Raton properties comprises three student housing properties. With 892 beds and a 98 per cent occupancy rate, these properties are the only off-campus, purpose-built, student housing facilities in the nearby area, said a statement from Investcorp.
The residential properties located in the suburbs of Minneapolis comprise two multi-family apartment properties with 854 units and an average occupancy rate of 95 per cent.
Minneapolis has the lowest unemployment rate in the US at 2.9 per cent, and has outperformed the national unemployment rate, it stated.
Yasser Bajsair, the managing director at Investcorp in Saudi Arabia, said the company continues to grow its US real estate presence through these acquisitions.
"We believe these properties are an exciting addition to our existing portfolio. The US rental market is increasingly important as the rate of home ownership in the US continues to decline and we believe these properties are based in high demand markets and have strong occupancy rates," he added.
Boca Student Housing (BSH) in Boca Raton, Florida: It comprises three Class A “rent by the bed” properties - University Park, University View and University Square - located in the affluent area in Florida which serves the housing needs of students from three local universities all in growth mode: Florida Atlantic University, Palm Beach State College and Lynn University.
These properties have a combined 892 beds and boast amenities specifically designed for students such as common amenity areas, fitness centers and shuttle service to and from Florida Atlantic University. They offer a resort-like setting and are among the most sought after rental properties in the area.
Hampshire Hill, Bloomington, Minnesota: A 534 unit garden style multifamily apartment complex, Hampshire Hill is located 16 miles from downtown Minneapolis. The property contains a mix of studio, one, and two bedroom units that have spacious floor plans, complete with landscaped grounds, pool, fitness center and laundry rooms. It is also conveniently located near several major highways and in close proximity to several leading employers.
Southwind Village, Burnsville, Minnesota: It is a 320-unit townhome style property less than 20 miles from downtown Minneapolis. The property boasts a newly renovated fitness centre, outdoor swimming pools and a six-acre park.
The property is located near several large companies including Pepsi Bottling Group, UTC Aerospace Systems and Fairview Ridge Hospital.
Located within the award-winning Lakeville Public Schools area and with easy access to many entertainment activities including Buck Hill Ski Area and Valleyfair Amusement park, the complex is an attractive option for families looking to reside in one of the fastest growing metropolitan areas in the US.
Investcorp said its total real estate acquisitions in the last twelve months have been worth $1.5 billion. In the last twenty years, Investcorp has completed over 400 property investments totaling more than $13 billion in value.
The Bahraini firm’s real estate investments span industrial, commercial and residential properties within the top 30 largest markets in the US, including the recent acquisition of a prime office building in Washington, DC, an industrial portfolio in Atlanta and office buildings in the submarkets of Atlanta, San Francisco and Boston.
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