Harbor Group International Secures $440 Million to Refinance Multifamily Properties

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Jun 06, 2023, 09:00 ET

Firm obtains mid-to-long range fixed rate debt for 25 assets

NORFOLK, Va., June 6, 2023 /PRNewswire/ -- Harbor Group International, LLC ("HGI"), a privately owned international real estate investment and management firm, today announced it has secured $440 million to refinance 25 multifamily properties within its portfolio across the United States. The loans were arranged through KKR, Freddie Mac, and Fannie Mae.

The refinanced properties include:

Empire Portfolio (Indianapolis): Freddie Mac via Berkadia provided a $44 million loan for eight assets totaling 915 units.
Florida Cardinal Portfolio (Florida): Freddie Mac via Capital One and Meridian Capital provided a $73 million loan for a nine-asset portfolio totaling 1,119 units.
Alesio Urban Center (Dallas, Texas): KKR provided a $122 million loan for a single asset featuring 908 units.
Piedmont Portfolio (Southeast): Freddie Mac via Newmark provided a $201 million loan for seven assets totaling 2,322 units.

Amongst the properties, HGI secured mid-to-long range fixed rate debt with no rate variability, while retaining some prepayment flexibility. Through HGI's prudent use of leverage, the firm has obtained favorable debt in the refinancing of these assets without investing additional capital.

"The successful refinancing of these 25 properties underscores HGI's ability to mitigate investment risk by removing floating rate exposure in a high-rate environment," said Pete Petron, Managing Director of HGI and Head of Asset Management. "HGI has found the right balance of debt to match the tailored business plans for each property, allowing the firm to maximize the value of its assets across the country."

"HGI's relationships with lenders such as KKR, Freddie Mac, and Fannie Mae has allowed us to successfully navigate various market cycles," said Lane Shea, Managing Director at HGI. "With our deep knowledge of the multifamily market and our strategic use of leverage on these assets, we're able to secure debt capital despite tighter lending conditions. We thank our dedicated lending partners including Berkadia, Newmark, Capital One, and Meridian Capital, in helping us uncover opportunities to create value for our investors."

Despite the tough economic climate, HGI has continued to evaluate and transact on attractive multifamily investment opportunities throughout the U.S. Most recently the firm acquired Mezzo, a 378-unit, Class A multifamily property in Aubrey, Texas, and invested in the ground-up development of Springside Middletown, a 240-unit Class A multifamily community in Middletown, Conn.

About Harbor Group International
Harbor Group International, LLC, and its affiliates control an investment portfolio of approximately $20 billion, including 59,000 apartment units in the United States and 5.0 million square feet of commercial space throughout the United States and the United Kingdom. In addition to its corporate headquarters in Norfolk, Virginia, HGI maintains offices in New York, Baltimore, Los Angeles, and Tel Aviv.

Media Contact:
Kailyn Myshrall
[email protected]

SOURCE Harbor Group International, LLC