Investcorp has expanded its real estate holdings with equity and debt investments in six high-quality office properties across key markets in the U.S.
The latest investments include two equity acquisitions and one debt financing investment. Investcorp acquired three properties in the Keystone Office Park located in the Raleigh-Durham area of North Carolina and one property in the Duke Bridges office park complex located in Frisco, Texas, a suburb of Dallas. Investcorp also originated a mezzanine loan secured by two office properties located in the Denver, Colorado metro area. With over 900,000 sq. ft., the combined properties total value exceeds $140 million.
These investments reflect Investcorp's activity through both equity investment and debt financing in high-quality, stable assets at attractive valuations, and in close proximity to commercial and economic hubs. The properties, with combined occupancy in excess of 95 percent, are leased by longstanding tenants, including the National Institute of Health, in Raleigh-Durham, Oracle, in Dallas, and the law firm BakerHostetler, in Denver.
"This portfolio adds to our growing mix of investments selected for their strong tenant histories, locations in economically flourishing metropolitan communities, and attractive 'going in' projected cash yields," Herb Myers, a managing director in Investcorp's real estate group, said in a statement. "The investment in properties in these cities is consistent with our theme of focusing on metropolitan areas with demand drivers from technology, healthcare, energy and education."
Christopher Hoeffel, a managing director in Investcorp's Real Estate group, added, "Office properties in growth markets with strong demand generators are on the rebound, and can be purchased at better valuations than similar properties in major gateway cities. Rooted in our value-oriented investment approach, we also see significant opportunities for high-quality, performing debt investments that can be acquired or originated at attractive yields."
During the last 12 months, Investcorp's real estate team has invested in eight equity transactions with a total deal size in excess of $300 million. During this same period, Investcorp has originated five mezzanine debt transactions with a principal balance in excess of $100 million and a total capitalization greater than $800 million. In May, Investcorp received commitments to invest in its latest US commercial real estate debt fund from several large US and European institutions. In the same month, Investcorp acquired a portfolio of four multifamily properties in Houston, Texas and, in March, it completed an acquisition of mixed-use commercial properties in Northern California valued at approximately $65 million.