NASHVILLE, TENN. — Harbor Group International (HGI) has made its fourth multifamily purchase in the past 15 months, acquiring a four-property apartment portfolio in Nashville for $130.5 million.
The portfolio includes 1,593 apartments and HGI plans to spend $4.69 million, or about $2,900 per unit, in various exterior and interior upgrades.
The deal reflects HGI's strategy of buying well-located apartment portfolios in improving markets, explains T. Richard Litton, Jr., HGI's president.
“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,” says Litton.
HGI's acquisition includes 627 units at Cherry Creek; 346 units at Arbors of Brentwood; 360 units at Cambridge at Hickory Hollow; and 260 units at Preakness.
The transaction, HGI's fourth in the past year, follows the company's acquisition of a 1,218-unit apartment portfolio in Florida in June. In July 2011, the Norfolk, Va.-based private real estate and management firm purchased a 1,984-unit portfolio of six multifamily properties in Baltimore.
“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,” says Litton. “We continue to aggressively pursue portfolio opportunities.”
HGI, which also has offices in New York and Tel Aviv, Israel controls a portfolio of worldwide assets valued at more than $3.4 billion.
Dave Gutting, Derrick Bloom and Vince Lefler of Jones Lang LaSalle represented the seller in the transaction.
— Liz Burlingame