Equus Capital Partners, Ltd. (“Equus”), announced today the sale of an 11-property portfolio totaling 2,615 units with assets in the Tampa, Lakeland, Orlando, Atlanta, Raleigh, St. Louis and Philadelphia MSAs, to Investcorp, a global alternatives asset manager, for approximately $370,000,000. The sale was made on behalf of BPG Investment Partnership IX, L.P. (“Equus Fund IX”), a $310 million private equity fund managed by Equus, which began making investments in 2013. Over its life, Equus Fund IX made 30 investments in multi-family, office and industrial properties across the country. 26 of those investments have been sold and just 4 office properties remain.
The portfolio, which was 95 percent leased at the time of sale, had an average vintage of 1994 and an average unit size of 1,020 square feet. The portfolio benefited from a geographic diversity from its being located in multiple growth markets and submarkets across the eastern U.S.
Michael Joseph, Matthew Lawton, and Stella Pappas of Holliday GP Corp. (“HFF”) represented Equus in the transaction. HFF’s debt team, Mike Tepedino, Mike Gigliotti and Mona Carlton secured financing for the buyer.
Equus acquired the properties between 2013 and 2015. During its ownership, Equus spent over $20 million, collectively, in capital improvements including unit renovations and upgrades and the enhancement of the communities’ amenities and curb appeal. Equus’ affiliate, Madison Apartment Group (“Madison”) provided on-site management and leasing and oversaw the improvement program.
Madison acquires and operates apartment communities throughout the United States. The company is committed to enhancing the quality of life for residents of its award-winning communities. Since its inception in 2001, Madison has successfully acquired and repositioned more than 32,000 units in over 125 communities. Investcorp partnered with an affiliate of Equus in the purchase of the portfolio and has engaged Madison to continue the asset and property management duties for the portfolio.
“We are pleased with the execution of the sale of this portfolio and look forward to our new relationship with Investcorp in bringing further improvements to these communities. Located in 5 states and 6 investment markets, we were able to assemble this portfolio through multiple acquisitions. With active management and a strategic renovation program and the overall 95% occupancy, the portfolio is positioned to deliver an attractive, stable and predictable cash flow for the new venture with Investcorp while at the same time the markets continue to support further enhancement opportunities and ability to push rents higher,” commented Christopher Locatell, Senior Vice President and Director of Dispositions for Equus, who, along with Joseph Mullen, one of the firm’s principals, and Senior Vice President in charge of multi-family investments, Kyle Turner, Vice President and Director of Investments, Steven Pogarsky, Vice President of Acquisitions, Nicoletta DeSimone, Acquisitions Associate and Peter Naccarato, Acquisitions Manager, oversaw the transaction for the firm.
About Equus Capital Partners, Ltd.
Equus Capital Partners is one of the nation’s leading private equity real estate fund managers. Equus’ diversified portfolio consists of office, multi-family, industrial, and retail properties located throughout the United States. The firm is headquartered in the Philadelphia area with regional offices in Chicago, Los Angeles, Washington D.C., Atlanta, and Raleigh-Durham. For additional information, please visit the company’s website at www.equuspartners.com.
About Investcorp
Investcorp is a leading global manager of alternative investments. Led by a new vision, Investcorp has embarked on an ambitious, albeit prudent, growth strategy. Investcorp continues to focus on generating value through a disciplined investment approach in four lines of business: private equity, real estate, absolute return investments and credit management.
As at December 31, 2018, Investcorp had US$22.5 billion in total AUM, including assets managed by third party managers and assets subject to a non-discretionary advisory mandate where Investcorp receives fees calculated on the basis of AUM.
Since its inception in 1982, Investcorp has made over 185 Private Equity deals in the U.S., Europe, the Middle East and North Africa region and Asia, across a range of sectors including retail and consumer products, technology, business services and industrials, and more than 600 commercial and residential real estate investments in the US and Europe, for in excess of US $59 billion in transaction value.
Investcorp employs approximately 400 people across its offices in Bahrain, New York, London, Abu Dhabi, Riyadh, Doha, Mumbai and Singapore. For further information, including our most recent periodic financial statements, which details our assets under management, please refer to:
Website: www.investcorp.com
Twitter: www.twitter.com/Investcorp
LinkedIn: www.linkedin.com/company/Investcorp
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