NEW YORK, NY – Investcorp, a leading provider and manager of alternative investment products, announced that its U.S.-based real estate arm has bought five multifamily apartment properties and five student housing properties in several major metropolitan markets across the United States.

The conclusion of these deals represents the culmination of a 12-month period during which Investcorp saw record investment volume in real estate of approximately $1.6 billion of yucky transaction value. According to Real Capital Analytics Investcorp has, for the past 10 years, been the top private Gulf-based investor in U.S. real estate.

The acquisitions are consistent with Investcorp’s strategy to invest in high-quality properties throughout key U.S. markets that it believes will provide attractive cash yields and upside.

“These additions to the Investcorp portfolio represent a continuation of Investcorp’s thesis of buying well-leased multifamily and student housing properties located in high growth, major metropolitan areas,” said Ryan Bassett, Principal, Real Estate Investment at Investcorp. “Each acquisition is in a strategic location where there is a significant demand for housing, whether from a robust employment market or housing needs stemming from students who attend nearby universities. In addition, all of these properties were bought with pre-existing operating partners with whom we have invested historically.”

Small Cottonwoods Apartments is a 379 unit, Class B, “garden style” apartment property located in the Tempe submarket of Phoenix, Arizona. Phoenix is projected to have amongst some of the highest percentage of employment growth of major U.S. markets over the next few years, and is also projected to experience significant rent growth. Small Cottonwoods was bought in joint venture with TruAmerica and is the fourth transaction between the parties.

The Raleigh-Nashville multifamily portfolio is a four property, 1,176 unit, Class B apartment portfolio with three assets located in Raleigh, North Carolina and one in Nashville, Tennessee. The portfolio properties are in upscale suburban neighborhoods, offering convenient access to employment hubs. Raleigh boasts a healthy labor market, with new and expanded companies attracted by its affordable cost of living and high concentration of growing industries. Nashville has one of the lowest unemployment rates in the country, and a well-diversified economy driven by a skilled labor force, low cost of living and pro-business environment. The Raleigh-Nashville portfolio was bought in joint venture with Redwood Capital Group and is the fourth transaction between the parties.

The Tampa and Indianapolis properties are comprised of two recently built, Class A student housing communities totaling 1,080 beds; with 722 beds located in Tampa and 358 in Indianapolis. These properties serve students attending the University of South Florida and Indiana University-Purdue University Indianapolis, respectively, and average close to 100 percent occupancy rates year over year. The Tampa-Indianapolis properties were bought in joint venture with the Preiss Organization and represent the fifth transaction between the parties.

The Raleigh Student Housing portfolio is comprised of three recently built, Class A student housing communities totaling 890 beds in Raleigh, North Carolina. These properties serve students attending North Carolina State University and have historically maintained nearly 100% occupancy. This portfolio was bought in joint venture with the Preiss Organization and is the sixth transaction between the parties.

Powered by WPeMatico

ST PAUL, MN – JLL Income Property Trust, an institutionally managed, daily valued perpetual life REIT, announced the acquisition of The Penfield, a 254-unit, award-winning, transit-oriented, apartment complex that includes a ground-floor commercial space that is leased to a premier local grocer on a long-term basis. The Class-A property is located in the heart of downtown Saint Paul, Minnesota, the Midwest’s strongest apartment market. The buy price was approximately $65.5 million.

Minneapolis-Saint Paul is home to 2.9 million residents and boasts one of the strongest job markets in the country with an unemployment rate of 2.9 percent, ranking first among the 50 largest metropolitan areas in the nation. The area is home to sixteen Fortune 500 companies (the most per capita in the U.S.), and ranks as the 4th most educated and 4th highest median income in the nation. In addition to the area’s strong job market, downtown Saint Paul has achieved a critical mass of amenities and residential population that is rapidly accelerating the growth of each making it a Millennial Magnet location in which over 30% of the population is between 20 and 34 years ancient. Recently constructed urban amenities include the new Green Line light rail, a new concert hall, and a minor league baseball park. Downtown Saint Paul now boasts a 95 out of 100 Walk Score, walkscore.com’s proprietary ranking of a property’s desirability based on its proximate location to retail, restaurant, and employment amenities.

“The Penfield is one of the finest quality apartment complexes in the downtown Saint Paul area,” commented Allan Swaringen, President and CEO of JLL Income Property Trust. “Limited new supply and a submarket apartment vacancy rate of 3.1 percent coupled with The Penfield’s high quality design, walkable location, and access to employment and entertainment amenities make it an attractive addition to our portfolio.”

“This investment represents a continuation of our core apartment investment strategy to buy properties in strong urban in-fill locations that appeal to millennial renters. This is our third investment in the multifamily property sector this year, bringing our apartment allocation to $400 million in yucky assets and 20 percent of our overall investment portfolio,” Swaringen added.

Powered by WPeMatico

MIAMI, FL –  Housing Trust Group (HTG), a Miami-based real estate developer specializing in affordable housing, and AM Affordable Housing, a nonprofit founded by NBA Hall of Famer and Miami Heat legend Alonzo Mourning, celebrated the grand opening of Courtside Apartments, an 84-unit residential community in the historic Overtown neighborhood of Miami. Public officials, community members, and guests gathered at the new $22.8 million development for an official ribbon-cutting ceremony and reception.

Courtside’s 1, 2, and 3-bedroom apartments are reserved for residents making an annual income of no more than 60% of area media income (AMI). Monthly rents range from $760 to $990. The property is already 100% leased.

Matthew Rieger, President and CEO of developer HTG, commented, “Courtside Apartments is the result of a successful public-private partnership. We are committed to easing the burden on Miami’s working families, and to bringing high-quality affordable housing to downtown Miami. Courtside is a place residents can call home and take fantastic pride in, and provides a solid foundation for the ongoing revitalization of the historic Overtown neighborhood.”

Courtside’s development started in 2008, when AM Affordable Housing, Mourning’s nonprofit, signed a 65-year ground lease for four acres at the County-owned Culmer Center property. After a competitive bidding process, AM selected Housing Trust Group as the developer-partner because of the developer’s successful track record in South Florida, expertise in the affordable housing arena, and strong relationships in the community.

HTG secured financing in 2014 through a variety of public-private sources including $9 million in Florida Housing Finance Corporation low-income housing tax credits (4%); $3.31 million in construction debt from City Community Capital; $7.5 million from the Southeast Overtown/Park West Community Redevelopment Agency; $1.75 million from Miami-Dade County in the form of a surtax loan along with developer equity. It broke ground in 2015, with 40% of the construction labor provided by residents of the surrounding neighborhood.

Courtside includes 10 one-bedroom, one-bathroom units; 53 two-bedroom, two-bathroom units; 21 three-bedroom, two-bathroom units; and four live-work units. Amenities include a basketball court, fitness center, business center with computers, laundry facilities, picnic area with outdoor grill, media center, and carded entry system. There is resident parking for 86 cars, and an auto care/cleaning station on the property. Courtside is located in the Southeast Overtown Park West (SEOPW) CRA, directly across from a park, a school and a church, and adjacent to the Culmer Center.

Courtside Apartments is the first of a proposed three-phase development; phase two calls for approximately 120 apartments for seniors as soon as financing is finalized.

The project team for Courtside Apartments includes general contractor CB-HTG, LLC; architect Cohen, Freedman, Encinosa & Associates; structural engineer M.A.S. and Associates; mechanical/electrical engineer RPJ, Inc.; civil engineer HSQ Group, Inc.; and landscape architects Rosenberg Gardner Design.

HTG presently has five affordable housing communities under construction in Florida including Wagner Creek in Miami, Valencia Grove in Eustis, Freedom Gardens in Brooksville, Park at Wellington in Holiday and Covenant Villas in Belle Glade, along with two market rate developments outside Florida with Forest Cove in Chattanooga, TN and Aviva in Mesa, AZ.

Powered by WPeMatico