Harbor Group Lands $440M for Nationwide Refis

Freddie Mac provided $44 million to refinance eight HGI communities in Indianapolis. Image by Sean Pavone via iStock

Harbor Group International has landed several loans that will be used to refinance its many communities across the U.S. The company secured $440 million worth of loans from KKR, Freddie Mac and Fannie Mae to refinance 25 of its communities. According to HGI, the refinance loans allowed the company to secure mid-to-long range fixed rate debt with no rate variability, while keeping some prepayment flexibility.

The refinancings apply to a portfolio of more than 5,264 units in communities ranging from Indianapolis to Florida. In the package, Freddie Mac provided a $44 million loan that will refinance eight communities totaling 915 units in Indianapolis. Berkadia arranged the loans for the Indianapolis communities.

Capital One and Meridian Capital arranged a $73 million loan that was provided by Freddie Mac and would refinance nine communities totaling 1,119 units in Florida. KKR provided a $122 million loan to refinance a single community called Alesio Urban Center totaling 908 units in Irving, Texas. Lastly, Freddie Mac provided a $201 million loan for seven communities totaling 2,322 units in southeastern U.S. Newmark arranged this Freddie Mac loan.

Rebalancing the multifamily portfolio

Besides its major $440 million refinancing for several properties across the U.S., HGI has remained active with multifamily investment opportunities. In April, the company acquired Mezzo, a recently-completed 378-unit Class A community in Aubrey, Texas. A month later, HGI announced it was partnering with PB Development to develop the 240-unit Springside Middletown in Middletown, Conn. The company is providing the majority of the funding for the project, which is expected to be completed in 2025.

HGI has not just been busy with acquisitions since the company has been equally selling off its communities as part of a divestment strategy. In April, HGI sold another community in the  Washington, D.C. area with Sussex at Kingstowne. That sale was followed by the company selling the 480-unit Oxford Hills in St. Louis. Mo. to FPA Multifamily in May.