Investcorp Acquires RE Assets in Dallas, South Florida for $105M

Continuing what is shaping up to be somewhat of a shopping spree, Investcorp has acquired a group of four commercial and residential assets in metropolitan Dallas and South Florida for $105 million.

Investcorp - San Remo Coral Gables FL - entrance

Continuing what is shaping up to be somewhat of a shopping spree, Investcorp has acquired a group of four commercial and residential assets in metropolitan Dallas and South Florida for approximately $105 million.  The Bahrain-based global provider and manager of alternative investment products purchased the properties in separate transactions.

The Dallas area is clearly a hotspot on Investcorp’s radar. The company picked up the Uptown Office Portfolio, two boutique office and retail buildings carrying the addresses of 3400 Carlisle St. and 2811 McKinney Ave., from Caddo Holdings L.L.C.

The five-story office structure at 3400 Carlisle features approximately 76,000 square feet, while the three-story 2811 McKinney offers 96,000 square feet. And roughly 20 miles to the north, Investcorp purchased One Allen Center, a 150,000-square-foot office building developed by Duke Realty in 2007.

Investcorp also added to its multi-family holdings with the acquisition of San Remo, a 180-unit townhome rental community in Coral Springs, Fla., roughly 20 miles northwest of Fort Lauderdale. Purchased from an affiliate of Gables Residential, the nearly 12-acre property first opened its doors to residents in the mid-1990s, offering homes in 14 three-story structures.

Together, the four commercial and residential properties Investcorp just acquired feature an average vacancy rate of approximately 95 percent. And they all dovetail with the company’s current strategy.

“These acquisitions are consistent with Investcorp’s approach of targeting high-quality assets with attractive yields,” Brian Kelley, a principal within Investcorp, said in a prepared statement. “The properties are all located in regions with solid, growing economies and we believe they are well positioned to add value for Investcorp.”

The same can be said of the company’s other purchases over the last six months. Last fall brought news of a $250 million acquisition of a 1.6 million-square-foot, 92 percent leased group of office and retail properties in the Chicago, Los Angeles, Minneapolis and New York metro areas. Soon after, Investcorp announced that it had grabbed a 3,000-unit collection of residential properties in Chicago, Austin and Las Vegas for a total of approximately $270 million. The deals were all made in separate transactions.

Of course, Investcorp is hardly alone in its strong desire to invest heavily in U.S. real estate. According to the Association of Foreign Investors in Real Estate’s annual survey, the U.S. remains the most stable and secure investment market among foreign investors, beating out second-place Germany by a margin of more than 50 percentage points. The U.S. real estate market is also at the head of the class in terms of the best opportunity for capital appreciation.