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Investcorp managing director Herb Myers
calls the acquisition ?a unique opportunity to
generate solid income returns while also
advancing leasing and operating income
over a longer time horizon.?
SAN FRANCISCO-The US-based real estate arm of Investcorp, a multinational provider and manager of alternative investment products, has paid $65 million for a portfolio of mixed-use commercial real estate properties in the Northern San Francisco Bay area—an area consistently ranked by institutional real estate investors as one of the top areas for investment within the US. The deal represents the largest transaction closed in the North Bay area so far this year and, according to the company, and demonstrates the firm’s continued selectivity and focus on high-yielding assets.
The predominantly class-A portfolio comprises 14 buildings, including a mix of office, industrial and retail properties concentrated in Petaluma and totaling 840,637 square feet, with properties currently occupied by a diverse group of tenants. In acquiring the portfolio, Investcorp ventured with PBJ Acquisitions, a San Francisco-based real estate owner and operator. Together, the companies will seek to increase the net operating income of the properties by leasing the currently vacant space and by renewing existing tenants.
“This acquisition of a diverse group of class-A properties presents a unique opportunity to generate solid income returns while also advancing leasing and operating income over a longer time horizon,” says Herb Myers, a managing director in Investcorp’s real estate team. “The multi-assets nature of this portfolio should also enable us to pursue, opportunistically, a number of value-creating options.” Myers could not be reached by GlobeSt.com before deadline to elaborate on the options mentioned, the seller, financing details of the purchase, the age of the properties involved or the company’s long-term plans for the portfolio.
The location of this investment builds on an established Investcorp focus on properties in close proximity to major US markets, but in submarkets where secure investments at attractive valuations are easier to find. In line with this strategy, Investcorp closed two Greater-L.A.-area transactions in 2011: the Park Tower office complex in Long Beach and the Residence Inn Manhattan Beach. These were complemented by additional transactions in Princeton, NJ, and in the corridor between West Palm Beach and Ft. Lauderdale, FL.
Categories:
West,
Industrial,
Office,
Retail,
Acquisitions/Dispositions,
San Francisco
Carrie Rossenfeld Carrie Rossenfeld is a reporter for the West Coast region of GlobeSt.com and Real Estate Forum. She was a trade-magazine and newsletter editor in New York City for 11 years before moving to Southern California in 1997 to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics ranging from intellectual-property licensing and giftware to commercial real estate. She recently edited a book about profiting from distressed real estate in a down market and has ghostwritten a book about starting a home-based business.
Article source: http://www.globest.com/news/12_307/sanfrancisco/acquisitions_dispositions/Investcorp-Acquires-Mixed-Use-Portfolio-for-65M-319616.html