NEW YORK CITY-Investcorp’s US-based real estate arm has closed on two equity investments outside of Manhattan. A source close to the deal says the firm has purchased the seven-story, 120,000-square-foot Park Tower office complex in Long Beach, CA from Park Tower LLC for $20 million and the 133,000-square-foot Bethesda Health City in Boynton Beach, FL from Bethesda Health Systems for $37 million.

The acquisitions were driven by the company’s continuing strategy of targeting coastal markets in urban areas like Greater Los Angeles, West Palm Beach and Ft. Lauderdale. Herb Myers, a managing director in Investcorp’s real estate group, says both properties offer strong going-in cash yields and high-quality existing tenancy. “We believe they will provide our investors with yields that look especially attractive given the forecasted period of low interest rates and economic conditions we face today,” he says.

Bethesda Health City, which was acquired in a partial leaseback transaction, is 98% leased by 17 tenants. At 96% occupancy, Park Tower has 25 tenants and is anchored by nonprofit ChildNet. Investcorp provided 100% of the equity for the Long Beach transaction, and 80% for the Boynton Beach acquisition, with the remaining 20% coming from its joint venture partner, Flagler Investments.