Harbor Group International has expanded its Southeast multifamily holdings with the acquisition of an eight-property portfolio for $306 million. Most of the assets are in North Carolina markets, including Charlotte, Raleigh, Winston-Salem, Greensboro and Durham, while the eighth asset is located in Hampton, Va. The seller was not identified.
The acquisition marks HGI’s return to North Carolina and expands the firm’s footprint in Virginia. The portfolio has a total of 2,322 units and features properties that are near major employers, office markets and entertainment centers.
Richard Litton, HGI president, said in a prepared statement the purchase gives HGI’s investors exposure to a diverse set of geographic locations in high-growth markets. He said the privately-owned international real estate investment and management company sees significant potential for continued high occupancies and rent growth across the portfolio.
HGI plans to invest about $13 million for capital improvements across the portfolio, following initial enhancements to the properties’ exteriors and common areas by the seller. HGI will focus on renovating unit interiors and installing appliances such as washer/dryers.
The properties acquired are:
- The Harlowe, Charlotte, N.C.; 192 units;
- Residences at West Mint, Charlotte, N.C.; 408 units;
- 200 Braehill, Winston-Salem, N.C.; 310 units
- Corners at Crystal Lake, Winston-Salem, N.C.; 240 units
- Mill Creek Flats; Winston-Salem; 220 units
- 7029 West, Greensboro, N.C.; 402 units
- Woodlake Reserve, Durham, N.C.; 266 units
- The Samuel, Hampton, Va.; 284 units
The portfolio was sold by Newmark’s Dean Smith and John Heimburger and financing was arranged by Henry Stimler, Bill Weber and Matt Mense of Newmark Capital Markets team.