Harbor Group International Acquires Ocean Front Apartments in Virginia Beach for $34M
- Apr 16, 2013
Virginia Beach, Va.—Harbor Group International LLC, a private real estate investment and management firm, has acquired the Virginia Beach, Va.-based Mayflower Seaside Apartments from Fairfield Mayflower Seaside LLC for $34 million. The purchase includes the free-standing retail building and parking structure that share the same city block.
“The asset is an iconic tower. At one time it was the highest building in the state of Virginia,” Robert Friedman, president of Harbor Group Management Company and managing director of Harbor Group International, tells MHN. “It’s been on the ocean front since 1950 and is the closest apartment building to the ocean front. There are no other apartments in the area that have the views like the Mayflower does. “
Located on the entire block between 34th Street and 35th Street and Atlantic Avenue and Pacific Avenue, the 265-unit Mayflower Seaside has great beach access and is in close proximity to retail and restaurant amenities located on the Virginia Beach boardwalk and surrounding neighborhoods. The property also offers excellent amenities, including two pools, one that is indoor and heated.
“Typically we don’t see assets in this market, but this was in our backyard; one we all grew up with and know well. We understand the history so it piqued our interest,” Friedman says. “The seller is a very good operator but they are an out-of-town operator. We’re right here and have about 4,000 apartment units in the area and about one million square feet of office. We felt there was management upside and we had the strength to tackle it.”
According to Friedman, the oceanfront is primarily hotels, timeshares and condos and there is a lack of apartments, with just one recently renovated complex nearby. Harbor has seen a growth of people who want to live on the oceanfront all year, and this transaction allows them to offer that now.
“One of the things we saw appealing was Fairfield had committed $5.5 million six years ago to redo the interior with granite countertops, new cabinets, new appliances and new carpet. What we’re going to do is complement that with another $4.8 million of improvements,” Friedman says. “We’re going to start at the top and replace the roof, the windows and make aesthetic enhancements to the exterior to give it a more updated appearance.”
In addition, all common areas will receive new carpet, lighting and paint, while the two pools will be given a more contemporary feel. The company will also update the health and fitness club and brand it Harbor Fit Health and Wellness.
Currently HGI owns and manages 3,819 apartment units, 1,025,777 square feet of office space and 469,423 square feet of retail in Hampton Roads.
Drew White, Mike Marshall, Wink Ewing and Ryan Ogden of ARA’s Washington, D.C., office acted as broker for the seller.