HGI, Garrett, Telis Form JV for $631M Portfolio Recap
The deal covers 11 properties across four states.

Harbor Group International, The Garrett Cos. and Telis Group have formed a joint venture for a $630.5 million recapitalization of an 11-property multifamily portfolio. Together, the communities total 2,192 units and span four states.
The properties, eight in Colorado and one each in Arizona, Indiana and Minnesota, have been developed by The Garrett Cos. from 2021 through 2023, with the portfolio now approximately 75 percent complete. Two properties have delivered and are in lease-up, while the remaining nine communities will deliver on a rolling basis this year.
The transaction involved a complex financial structure with nine different lenders across markets. The lenders were not identified. As part of the recapitalization, HGI will be functioning as the LP for the developments going forward.
Mo Beler, co-head of Walker & Dunlop’s Structured Finance Group, and Aaron Appel, co-head of Walker & Dunlop’s NYC Capital Markets practice, facilitated the transaction. Carly Saviano, partner and co-chair of the real estate department at Wilkie Farr & Gallagher LLP, provided counsel.
Beler told Multi-Housing News that developers are navigating a complex web of market pressures including elevated construction costs and recent interest rate volatility that has impacted development economics and traditional financing structures. He said these headwinds, combined with longer construction timelines and shifting exit assumptions, have created a need for innovative capital solutions.
“Structured recapitalizations have emerged as a critical tool, allowing strong sponsors to optimize their capital stack, extend runways and maintain momentum on quality developments,” he said. “This transaction demonstrates that institutional capital remains highly selective but actively engaged for the right combination of sponsorship, assets and markets.”
Portfolio details
The four communities in the Denver market have a total of 534 units. They are:
- Five810 Southlands II, 5810 S. Southlands Parkway, Aurora, Colo., 280 units
- The Lennox at Copperleaf, 22100 E. Quincy Ave., Aurora, 176 units
- Meadows Townhomes and Flats, 2390 Mercantile St., Castle Rock, Colo., number of units unavailable
- Southlands Townhomes, Aurora, address and number of units unavailable.
The four properties in the Colorado Springs, Colo., market have a total of 858 units. They are:
- Jasper at Victory Ridge I, 10650 Sapphire Falls View, 280 units
- Jasper at Victory Ridge II, 10650 Sapphire Falls View, 194 units
- The Citizen on Constitution, 7640 Constitution Ave., 226 units
- The Newton, address and number of units unavailable.
The remaining properties in the recap transaction are:
- The Maverick, 370 Homestead Ave., Greenwood, Ind., 226 units
- The Nash, 1003 148th St. W, Rosemount, Minn., 250 units
- Agave Ranch, 10060 W. Desert River Blvd, Glendale, Ariz., 324 units.
A previous HGI, Garrett deal
Early last year, HGI bought two newly developed communities with 434 units from The Garrett Cos. in the Denver market for a total of $132.5 million. One of the properties was The Prospector Modern, a 238-unit community in Castle Rock, completed in 2023 with 17 two- and three-story buildings across a 27.5-acre site.
The second community was Ladora Modern Apartments, which was also completed in 2023. The property has 14 residential buildings on 5.7 acres about 17 miles from downtown Denver.
However, HGI has not partnered with The Garrett Cos. on any transaction until the portfolio recapitalization. Further, the company has never worked with Telis Group prior to the latest deal.
This recapitalization transaction marked HGI’s first multifamily investment of 2025. Last year, HGI invested $909 million across 25 multifamily communities. HGI and its affiliated control an investment portfolio of about $20 billion, including 57,000 apartment units in the United States.
Garrett, a full-service multifamily development, construction and management firm, is active in six states and has delivered more than 18,000 apartment homes since 2014.
Telis Group is a real estate private equity manager co-founded by RD Khoury, Keller Reese and Eric Garrett, founder and CEO of The Garrett Cos. Telis currently manages a $1.3 billion portfolio consisting of more than 5,800 units across nine states and 11 markets.