DALLAS—A robust economy makes for a robust real estate market. Though metro unemployment rose above 4% in early 2017, the overall Dallas economy is enjoying a healthy expansion and overall employment is at an all-time peak. The professional/business services and financial services sectors are growing at particularly brisk rates, with job numbers increasing year-over-year at 3 and 5%, respectively, according to Ten X.
This stout employment environment gives way to multifamily offerings, with some bigger than others. Such was the case with a recent portfolio sale. Harbor Group International LLC originally purchased a 12-property Dallas portfolio for $227.335 million back in 2014. Recently, Harbor Group affiliates sold five apartment communities within the portfolio, totaling 1,192 units for a total sale price of $295.25 million.
“We have a strong, long track record in Dallas,” T. Richard Litton Jr., president, Harbor Group International LLC, tells GlobeSt.com. “When we acquired the portfolio, we anticipated continued strong fundamentals in Dallas as well as the ability to grow rents through an effective value-add program. Our investment thesis played out perfectly.”
The properties were originally acquired by affiliates of HGI as part of a 3,100-unit portfolio, including 10 Dallas apartment communities in Dallas and two in Houston. HGI has now sold all 10 properties in the Dallas portfolio to three different buyers.
“HGI continues to show its ability to acquire large portfolios of multifamily properties, add value to each asset and execute our exit plan on each asset individually in order to maximize value,” said Litton. “In addition to the highly successful sale of this Dallas portfolio, HGI has successfully executed 'buy wholesale, sell retail' strategies in the last several years on apartment portfolios in Orlando, South Florida, Nashville and Baltimore. We expect that portfolio acquisitions will continue to be a hallmark strategy for HGI.”
Harbor Group International's real estate holdings include in excess of 4.7 million square feet of commercial properties and approximately 22,500 apartment units.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
