Housing starts stall, optimism doesn’t

Thu, 18 Jul 2013 09:22:02 +0000

Despite an unexpected and substantial fall in new home construction in June, industry analysts appear undeterred in their veritable housing euphoria.

“This reflects a characteristically volatile multi-family sector rather than renewed weakness, and we expect homebuilding volumes to rise further later this year,” wrote Paul Diggle of Capital Economics.

Housing starts fell 9.8 percent, but the drop was entirely in apartment construction, which accounts for 30 percent of all residential construction activity, according to the U.S. Commerce Department. Multi-family starts fell by 26.2 percent in June compared to May. Single family housing starts fell by just 0.8 percent month-to-month.

(Read More: Map: Tracking the US Real Estate Recovery)

“Should we be concerned? Not yet,” wrote Patrick Newport of IHS Global Insight. “Builders are still not putting up enough homes. Far from it. By our estimate, underlying demand is running close to 1.4 million. Meanwhile, housing completions in July were 755,000 [annual rate], while housing permits were 911,000.”

Article source: http://www.cnbc.com/id/100893375

Investcorp acquires 1000+ unit multifamily portfolio in Houston

Mon, 21 May 2012 16:36:52 +0000

NEW YORK, May 21, 2012 /PRNewswire via COMTEX/ –
Investcorp’s US-based real estate arm today announced it has acquired an interest in a portfolio of four multifamily properties in Houston, Texas. The acquisition is consistent with Investcorp’s recent focus on high-yielding, stable real estate assets in the major metro areas of the United States.

Investcorp recapitalized the assets with current owner MHP Investments, which will retain an interest in the transaction. Affiliates of MHP currently own and manage approximately 6,000 units in Texas, Florida, and the Mid-Atlantic states.

The portfolio consists of four adjacent properties of 1,076 units in the master-planned Copperfield community of northwest Houston. The properties recently underwent a $6 million renovation and the portfolio is currently 95% occupied.

“Vacancy rates for rental apartments have declined, as home ownership in the United States has fallen to its lowest level in more than a decade,” said Brian Kelley, a Principal in the Investcorp real estate team. “This shift, in the context of relatively modest new supply, has created interesting opportunities in the multi-family sector.”

Investcorp financed the transaction with 10-year, fixed-rate financing.

Ryan Bassett, a Vice President in the Investcorp real estate team, said: “The Houston metro area continues to be one of the largest and strongest job producers in the nation, and many of Houston’s new jobs have been in the Energy Corridor of West Houston. We think MHP has done an excellent job with these properties to date, and we’re delighted to be working with them in this joint venture.”

This transaction is in line with Investcorp’s real estate investment approach of seeking out stable assets in major metro areas with strong fundamentals at attractive valuations. Earlier this year, Investcorp acquired a portfolio of office, industrial, and retail properties in the “North Bay” region of the San Francisco Bay Area for approximately $65 million.

About InvestcorpInvestcorp is a leading provider and manager of alternative investment products. Investcorp has offices in New York, London and Bahrain and is publicly traded on the Bahrain Bourse (INVCORP). Investcorp has three business areas: corporate investment in the US, Europe and the Gulf, real estate investment in the US and global hedge funds. As at December 31, 2011, Investcorp had $11.6 billion in assets under management. Further information is available at
www.investcorp.com .

SOURCE Investcorp

Article source: http://www.marketwatch.com/story/investcorp-acquires-1000-unit-multifamily-portfolio-in-houston-2012-05-21

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Housing starts stall, optimism doesn’t

Investcorp acquires 1000+ unit multifamily portfolio in Houston