NEW YORK CITY—An affiliate of Harbor Group International has funded a $35 million, 9% mezzanine loan in connection with the purchase of a 15-property portfolio of multifamily properties, primarily in Brooklyn. The portfolio was acquired for $236 million by a longstanding Brooklyn multifamily operator and investor that contributed approximately $38 million of equity in the transaction.
The identities of the portfolio's buyer and seller were unavailable at press time. Among the highlights of the portfolio, two buildings are on Kings Highway while three sit on Nostrand avenue and the Staten Island property is at 2862 Hylan Blvd.
“Mezzanine loans and preferred equity transactions have become increasingly important components of HGI's diverse investment strategy,” says T. Richard Litton, Jr., president of HGI. “We continue to actively pursue these types of opportunities with quality sponsors and operators.”
Fourteen of the properties are located in two distinct neighborhoods of Brooklyn, comprising seven in the Midwood section; and seven in East Flatbush. The one remaining property is in Staten Island. Current occupancy for the entire portfolio is above 98%.
Harbor Group International is a private real estate investment and management firm which controls a portfolio of worldwide assets valued at approximately $4 billion. HGI is headquartered in Norfolk, VA with offices in New York and Tel Aviv. The company's real estate holdings include in excess of 7.4 million square feet of commercial properties and approximately 29,000 apartment units.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
