Investcorp Acquires Office, Retail Assets Worth $250M

Investcorp, a global provider and manager of alternative investment products, continues an active year with the acquisition of office and retail assets in the greater Chicago, Los Angeles, Minneapolis and New York areas valued at $250 million.

Mountaingate

Investcorp, a global provider and manager of alternative investment products, continues an active year in the U.S. commercial real estate market with the acquisition of office and retail assets in the greater Chicago, Los Angeles, Minneapolis and New York areas valued at $250 million.

The properties acquired by Investcorp, which has offices in New York, London, Bahrain, Saudi Arabia and Abu Dhabi, comprise a total of more than 1.6 million square feet and have a combined occupancy rate of approximately 92 percent.

“This acquisition adheres to Investcorp’s approach of targeting high-quality assets, located in major metropolitan areas characterized by economic growth. In addition, our approach is to invest in assets that we believe will provide attractive yields soon after they are acquired,” Herb Myers, managing director in Investcorp’s real estate group, said in a news release. “We believe that these properties also present an opportunity to improve their operating and leasing performance over a longer time horizon.”

Most of the properties are office buildings, except for Mountaingate Plaza, a 25-acre shopping center in Simi Valley, Calif., outside Los Angeles. The retail center has 246,326 square feet and includes a grocery anchor, Valley Produce Market, along with Rite Aid, Big 5 Sporting Goods and a 35,000 square-foot medical office building. It is located at Los Angeles Avenue and First Street, the city’s busiest intersection, close to major highways.

Two buildings in the Chicago suburb of Evanston, Ill., with a total of 339,000 square feet were among the office assets acquired recently by Investcorp. The buildings at 1603 and 1629 Orrington are located near Northwestern University.

The Oracle Centre and International Centre in downtown Minneapolis have a total of 622,000 square feet of Class A-/B+ office space. Oracle America is one of the largest tenants at the Oracle Centre, a 20-story building at 900 Second Ave. South. International Centre at 920 Second Ave. South has 17 stories. The two properties share a common court and have a total of 43 longstanding tenants.

Three office buildings in Garden City, Mineola and Rockville Center, N.Y., make up the Long Island Office Portfolio. They have a total of 374,000 square feet and 132 tenants, including law firms, and healthcare and technology businesses. Located just outside New York City and near major highways, the properties are at 666 Old Country Road, Garden City; 114 Old Country Road, Mineola, and 110 Merrick Road, Rockville Center.

Investcorp, which has acquired more than 200 properties with a total value of about $10 billion since 1995, has more than $4 billion of property and debt funds under management. In April, the firm’s U.S.-based real estate arm acquired five high-quality office properties in the Washington, D.C., Denver and Houston metropolitan areas for a total of $200 million. Those properties were: Tysons Commerce Center, 181,000 square feet, in Tysons Corner, Va.; Westmoor Place in Denver, which had 428,000 square feet in three buildings; and One Westchase Center in Houston, a property with 466,000 square feet in the city’s Westchase submarket.

The firm started off 2013 by acquiring two portfolios with a total of 16 office properties and 900,000 square feet in the Houston and Chicago metropolitan areas for approximately $120 million. In December, 2012, Investcorp had entered into a joint venture with Golub & Co. to buy the 427,161-square-foot Oak Creek Center portfolio in Lombard, Ill., for $39.5 million.