FORT LAUDERDALE, WEST PALM BEACH AND ORLANDO, FLA. — Harbor Group International (HGI) has acquired a three-property multifamily portfolio totaling 1,218 units for $99.7 million.
“The acquisition of the portfolio reflects HGI’s strategic decision to expand our investment and operational presence in major Florida markets,” says Richard Litton Jr., president of HGI.
The portfolio includes the 302-unit Serramar in Fort Lauderdale, the 444-unit Turtle Cove in West Palm Beach and the 472-unit Island Club in Orlando. CBRE Group represented the seller of the portfolio. HGI plans to invest $4.9 million, approximately $4,000 per unit, for various exterior and interior upgrades.
“All three of the assets are located in stable, high-traffic submarkets and are well-positioned to benefit from improving apartment fundamentals in South Florida and Orlando, particularly upon completion of our capital improvement program,” Litton says.
According to Marcus & Millichap, vacancy rates in the first quarter of 2012 were down from the prior quarter in all three cities. In Orlando, vacancy declined 30 basis points in the first quarter to 6.4 percent. Vacancy also fell 30 basis points in West Palm Beach, bringing the vacancy rate to 6.3 percent. Fort Lauderdale experienced the largest change with a 40 basis point drop to 4.9 percent.
HGI is a private real estate investment and management firm headquartered in Norfolk, Virginia, with a portfolio of nearly $3.2 billion in assets worldwide. The company owns two additional multifamily properties in Florida, the 276-unit Sienna Bay in St. Petersburg and the 164-unit Village Green in Altamonte Springs.