Investcorp Scoops Up Student Housing, MF Assets

University View and the two other Boca Raton, FL properties are 98% occupied.

NEW YORK CITY—Investcorp’s US-based real estate arm said Monday it had closed on about $220 million worth of acquisitions in the multifamily and student housing sectors. The five properties are located in the Minneapolis metropolitan area and in Boca Raton, FL. Investcorp did not identify the sellers. Real Capital Analytics data reveal that the seller of the 892-bed Boca Student Housing portfolio was a joint venture of Rosemurgy Properties, Lewis Rental Properties and Giles Capital Group. Comprised of University Park, University View and University Square in Boca Raton, the student housing assets traded for a combined $105.3 million. The three properties have an occupancy rate of 98%. Virtu Investments was the seller in the $45.3-million deal for Southwind Village in Burnsville, MN, according to RCA data, which also show that a JV of Westdale Investment Partners and Westdale sold Hampshire Hill in Bloomington, MN for $68 million.  Both Minneapolis-area apartment properties traded at over 40% more than their previous sale prices within the past five years. “As the home ownership rate in the US continues to decline, rental properties are in high demand,” says Herb Myers, managing director, real estate investment 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, which has acquired a total of $1.5 billion of real estate over the past year, has been a seller as well as buyer of apartment properties recently. RCA data show that the alternative investment manager traded three garden-style multifamily assets in the suburbs of Chicago earlier this year. The three apartment complexes sold for approximately $141 million combined.