HGI Acquires $1.8B Portfolio

Comprising 9,677 units across 25 communities, the properties are located in Philadelphia, Chicago, Baltimore, Boston and metro Washington, D.C. The company purchased the portfolio from Lone Star Funds.

Jordan Slone, chairman & CEO of HGI
Jordan Slone, chairman & CEO of HGI

Harbor Group International has invested $1.8 billion in a 25-property portfolio comprising 9,677 units. Spanning across five major metropolitan areas, the company purchased the portfolio from Lone Star Funds. 

“HGI was selected to acquire this portfolio due to the company’s strong track record with complicated portfolio transactions,” said Jordan Slone, chairman & CEO of HGI. “HGI was able to quickly mobilize a large-scale due diligence effort and secure attractive financing with Freddie Mac and New York Community Bank. This acquisition propels HGI further up the rankings as one of the largest apartment owners in the country.”

Increased Investment 

This marks HGI’s largest transaction to date and increases its investment portfolio by $1.9 billion. The properties are located in Philadelphia, Chicago, Baltimore, Boston and metro Washington, D.C. The company plans to invest another $80 million to update community amenities, interior features and improve curb appeal. The average occupancy rate for the properties is at 95 percent. 

Meridian Capital Group provided investment advisory and mortgage brokerage services to HGI, which included the placement of $512 million of fixed rate debt with New York Community Bank. Berkadia Commercial Mortgage provided $930 million of fixed and floating rate debt through Freddie Mac. Eastdil Secured represented Lone Star in the transaction. 

In November, HGI also acquired Elan Audubon Park, a 449-unit community in Orlando, Fla., for $97.1 million. 

Image courtesy of HGI