Bahrain-based private investment group buys student housing near UCF

GrowthSpotter contributor

Investcorp, a private global investment company headquartered in the Persian Gulf nation of Bahrain, paid $42.27 million last week for a 228-unit student housing complex near the University of Central Florida.

The company purchased the former Village at Alafaya Club last Thursday, according to a deed recorded Monday morning. Investcorp secured a $39.55 million mortgage on the property, now called Mercury 3100, from the Canadian Imperial Bank of Commerce.

The seller, Starwood Capital Group Holdings LLC of Greenwich, Connecticut, previously paid $45.3 million for the apartments in January 2015. 

Located at 3100 Alafaya Club Drive, the complex sits on 39.4 acres just north of Lokanotosa Trail and west of North Alafaya Trail. The 20 buildings on the campus, built in 1999, are either three or four bedrooms. The community includes a combined rec center/meeting room, a swimming pool and full court basketball court.

Asset Campus Housing is now property manager under the new ownership.

Officials with the buyer and seller did not respond to requests for comment on Monday.

Investcorp, founded in 1982, bills itself as a global leader of alternative investments for select individuals and institutions.

The company’s real estate arm, based in New York, is an active investor in U.S. commercial real estate equity and high-yield debt, with annual transaction volumes of about $1 billion per year, according to its website. 

The recent acquisition is the third locally by Investcorp in the past 60 days. The company paid a combined $98 million in late May through a joint venture with Los Angeles-based TruAmerica to buy the 360-unit Montevista at Windermere (6325 Conroy Road) near The Mall at Millenia, and the 348-unit Highpoint Club near UCF (11100 Point Sylvan Circle). 

Investcorp’s investment strategy is to focus on mid-market core/core-plus investment opportunities throughout the United States, targeting properties that generate cash flow and potential for capital appreciation.

U.S. real estate investments under Investcorp management have nearly doubled in the last three years, according to its website. Investcorp is regularly the largest private Gulf real estate investor in the United States, the company claims, and has been a top foreign real estate investor in the U.S. for the last 10 years.

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