Investcorp Acquires University Village & University Estates in Austin

Investcorp, one of the prominent providers and managers of alternative investment products headquartered in New York, announced the acquisition of several residential properties in separate transactions, in Austin, Chicago and Las Vegas. The amount paid for all transactions was approximately $270 million.

Investcorp, one of the prominent providers and managers of alternative investment products headquartered in New York, announced the acquisition of several residential properties in separate transactions, in Austin, Chicago and Las Vegas.  The amount paid for all transactions was approximately $270 million.

“These recent residential acquisitions are consistent with our strategy of targeting high quality assets with what we believe are attractive yields and the potential for near- and long-term upside through operating improvements and renovations,” says Christopher Hoeffel, managing director in Investcorp’s real estate group.

In Austin, the firm has purchased two student housing communities located in the Riverside submarket: University Village & University Estates. When combined, the two properties total 846 units of two-, three- and four-bedroom units, or 2,700 beds. Amenities include full size washer/dryer in every apartment, large bedrooms with private baths, walk in closets, free high-speed internet, and free cable with HBO. Leases are of the By-the-Bed type, with the lease holder being responsible only for their portion of the rent, without penalties in case of late payments from the roommates.

The nearness to the University of Texas at Austin and other colleges with significant student population ensure a high occupancy rate, as Brian Kelley, one of Investcorp’s Principals reported.

“These properties not only have high occupancy rates but, also, are located near major employment centers in areas with solid economic fundamentals,” he says.

Since 1995 the company has acquired around 200 properties valued at approximately $10 billion, and holds another $4 billion in property and debt funds under management. The company has offices in New York, London, Bahrain, Saudi Arabia and Abu Dhabi.

Photos courtesy of University Village at Austin and University Estates at Austin.