Private equity firm Investcorp Holdings has purchased five apartment buildings across the U.S. in a deal valued at $330 million.
The buildings — located in the suburbs of Atlanta; Baltimore, Maryland; and Jacksonville, Florida — contain a combined 1,800 rental units geared toward middle-income renters, according to Bloomberg News.
The deal bolsters Investcorp’s multifamily portfolio at a time when investors are increasingly favoring residential assets over offices and hotels.
It also follows a sale last November of eight apartment buildings owned by the firm in Arizona, California, Florida and New York.
Investcorp currently owns more than 14,000 units in the U.S., spread out over 40 properties, according to Bloomberg. It has $33 billion in assets under management.
The firm was ahead of the pandemic-driven turn toward multifamily and industrial assets, choosing to focus its portfolio on those sectors several years ago. It also owns malls, student housing and offices throughout the country.
The company has run into trouble with some of those investments: Earlier this year, the firm was the target of a lawsuit by Wells Fargo after it defaulted on a $65.1 million CMBS loan for a South Florida mall.
[Bloomberg News] — Sylvia Varnham O’Regan