Harbor Group International Acquires Four-Property Portfolio for $131M

Harbor Group acquires a four-property portfolio; MC Companies buys a 170-unit Austin asset; and Beech Street refinances three assets in Connecticut to the tune of $16.7 million.

Cherry Creek

Nashville, Tenn.—Harbor Group International LLC announced that affiliates of the company have acquired a four-property multifamily portfolio located in Nashville, Tenn. The portfolio includes 1,593 apartments at a total purchase price of $130.5 million.

The portfolio consists of the following properties: Cherry Creek (627 units). Arbors of Brentwood (346 units), Cambridge at Hickory Hollow (360 units) and Preakness (260 units).

HGI plans to invest an additional approximately $4.69 million (approximately $2,900/unit) into various exterior and interior upgrades to the Portfolio.
“The acquisition of the Portfolio continues HGI’s proven strategy of acquiring well-located apartment portfolios with value-add and operational upside in improving markets,” said T. Richard Litton, Jr., president of HGI. “All four properties have occupancy levels above 90 percent and are poised to realize increased revenues as we implement our capital program and the Nashville market continues to improve,” he further commented.

“HGI has a long and successful investment history in the Nashville market and we look forward to meeting our investment objectives on this portfolio,” said Litton.

This transaction is HGI’s fourth apartment portfolio acquisition in the last 15 months, following the acquisition of a 1,218 unit portfolio in Florida, a 1,984 unit portfolio in Metro Baltimore and a 2,500 unit portfolio in southeastern Virginia.

“HGI is uniquely positioned to complete portfolio transactions thanks to our equity resources, a strong track record with similar acquisitions and the company’s overall success rate,” said Litton, “We continue to aggressively pursue portfolio opportunities,” he further noted.

Dave Gutting, Derrick Bloom and Vince Lefler of Jones Lange LaSalle acted as the broker for the seller of the portfolio.

MC properties acquires 170-unit Austin asset

Terracina Apartments

Austin—Scottsdale-based MC Companies has acquired the Terracina Apartment Community, a 170-unit asset located in Austin’s Arboretum neighborhood. The property will rebranded The Place at Terracina and will be managed by MC Residential Communities.

“We like Austin because of strong employment growth,” says Ryan Francisco, director of acquisitions for MC. “Austin is one of the hottest rental markets because of job creation. We really like the Arboretum submarket. There is very little new supply coming online within the area, and there is a relatively large affordability gap between renting and home ownership. Additionally, the property has undergone significant interior and exterior renovations.”

Terracina fits in with MC’s strategy of long-term acquisition and management, according to Tanner Bickelhaupt, director of investor capital. “We are not a company that flips properties,” he says. “Our goal is to buy great communities in great areas.”

Beech Street Capital closes $16.7M in loans for Connecticut Assets

Lakeview Apartments

Farmington, Wethersfield & Litchfield, Conn.—Beech Street Capital has closed $16.7 million in Fannie Mae conventional loans to refinance three properties in Farmington, Wethersfield and Litchfield, Conn. Brian Sykes, vice president in Beech Street’s Boston office, originated the transactions on behalf of the owner, Equity Management Corp.

The company was looking to take advantage of low interest rates. Beech Street offered a full-term interest-only object to help Equity Management land financing that allowed the company to utilize cash flow to fund ongoing improvements at the assets.

“Even though the local banks are competitive, it always behooves a borrower to meet with Beech Street, a GSE expert, to make sure they are getting the best structure and pricing available in the marketplace,” says Sykes.