Harbor Group Lands $87M Refi for Philly-Area Property
- Aug 11, 2020
Harbor Group International has landed an $86.8 million refinancing loan for its 405-unit apartment community in Exton, Pa. The firm secured the 10-year, floating-rate loan from Freddie Mac.
The property, Exton Crossing, was built in 1998 and comprises a mix of one-, two- and three-bedroom units with interior features that include stainless-steel Energy Star appliances, private patios or balconies, walk-in closets, central air conditioning and in-unit washers and dryers. Common amenities at the property include a swimming pool with deck, a fitness center and outdoor grilling area.
Also included with the community is 5,500 square feet of commercial space currently leased to two tenants—a hair salon and a daycare center.
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Situated in suburban Philadelphia about 30 miles north of downtown, Exton Crossing is within walking distance to SEPTA’s Exton Regional Rail Station.
Harbor Group purchased the property in 2017 for $95.7 million from Equus Capital Partners. The acquisition was financed by a $71.8 million Freddie Mac loan that matures in 2027, according to Yardi Matrix data.
An NKF Multifamily Capital Markets team of Henry Stimler, Matthew Mense, Bill Weber and Dan Sarsfield represented Harbor Group in the financing deal. Stimler said in prepared remarks that the refinancing was an example of a broader trend of multifamily owners reevaluating in-place financing of their properties, in light of the current historically low rates.
Earlier this year, Virginia-based Harbor Group acquired a 36-property multifamily portfolio scattered across the South and Sun Belt regions from Aragon Holdings for $1.8 billion, in one of the largest apartment portfolio deals in history. The deal was part of Aragon’s larger $2 billion sale of its entire multifamily portfolio, which totaled 15,000 units.
Last month, Harbor Group sold one of the properties involved in the billion-dollar deal to an unidentified, San Francisco-based buyer for $81.5 million. The 807-unit residential community is located in Kansas City, Mo., about 16 miles south of the downtown area.