CAPITAS ADVISES ON U.S. MULTIFAMILY REAL ESTATE PROPERTY ACQUISITION
Capitas (DIFC) Limited (“Capitas”), an international real estate advisory firm regulated by the Dubai Financial Services Authority, today announced its role in the acquisition of a privately-held Class “A” multifamily property in Houston, Texas.
The co-investment transaction, valued at over $52 million, was executed through a partnership between a Capitas structured offshore vehicle specifically established to co-invest in the transaction and a leading US asset manager with over $2 billion in multifamily assets under management. The deal is expected to be the first in a series of co-investment acquisitions of Class “A” multifamily properties in the US between the parties. Equity capital was sourced to Middle East based investors as Capitas has witnessed strong demand for quality deals in defensive sectors such as multifamily real estate.
The property is a 2014 vintage, garden-style multifamily property that is over 90% occupied and is adjacent to key employment centers in the Energy Corridor in Houston, Texas. The property will be managed by Alliance Residential, one of the largest property managers in the United States.
Capitas views the US multifamily sector as a highly defensive and stable sector driven by a demonstrable change of consumer habits away from homeownership and towards renting. Capitas’ investment strategy within the sector is being increasingly driven towards high-quality properties in 18 Hour Cities, such as Houston, Dallas, Atlanta, Charlotte, Phoenix and others. 18 Hour Cities are non-gateway markets with stronger job growth and growing demographic fundamentals driven by a lower cost of living and a lower cost of doing business as compared to the gateway markets of Boston, New York, Washington DC, San Francisco and Los Angeles. Additionally, Capitas’ analysis shows that investments in 18 Hour Cities typically offer stronger returns given the sizeable market cap rate differential between gateway markets and non-gateway markets.
Capitas (DIFC) Limited is a specialized real estate investment platform based out of the Dubai International Financial Center, UAE that serves as an adviser and partner to a select group of institutional investors, sovereigns, royal and family offices, and government ministries. Backed by an experienced team of real estate experts, Capitas currently manages 3 million square meters of development in the GCC and provides real estate acquisition and strategic cross border transaction advisory to its clients and partners with a particular focus on US and UK real estate transactions. Additional information about Capitas can be found at capitas.me
Capitas (DIFC) Limited
Regulated by the DFSA
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