A Harbor Group International holding in the Washington, DC area.
NEW YORK—Harbor Group International has acquired a 36-asset apartment portfolio from Los Angeles-based Aragon Holdings for $1.85 billion. The trade of the 13,243-unit portfolio is the fifth largest apartment portfolio sale ever, and the largest since 2016, according to the companies.
The deal is part of Aragon's broader $2 billion sale of its entire apartment portfolio, a transaction that consists of 15,000 units in 12 cities and 8 states.
Aragon CEO Larison Clark said the company decided to sell its portfolio because it recognized that, in the present market conditions, the properties would have the greatest value in the hands of a 'value-add' operator. "Harbor Group targets value-add opportunities, making this an ideal transaction for both firms," he said in prepared remarks.
The portfolio, which had been acquired over the last 10 years, is primarily in the southern portion of the United States, from Arizona to Florida. The properties average 350 units each, comprised of two- and three-story buildings located in suburban areas near employment centers, shopping, highly rated schools and easy transportation access.
Newmark Knight Frank represented the seller in the sale and the buyer for the debt financing. NorthMarq Capital represented the seller for debt assumptions and defeasance. Meridian Capital Group was used by the buyer as an advisor.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
