CoStar Insights

Harbor Group Acquires 9,677-Unit Apartment Portfolio in $1.8 Billion Deal from Lone Star

by Mark Heschmeyer | Dec 06, 2017
harbor groupHarbor Group International has acquired a 25-property, 9,677-unit multifamily portfolio spanning five metropolitan areas from affiliates of Lone Star Funds.

The $1.8 billion transaction (about $186,000 per unit) is the company's largest to date and increases Harbor Group's investment portfolio from $5.2 billion to $7.1 billion. The properties are located in the Washington DC, Philadelphia, Baltimore, Chicago and Boston metro areas.

"Harbor Group was able to quickly mobilize a large-scale due diligence effort and secure attractive financing with Freddie Mac and New York Community Bank," said Jordan Slone, chairman and CEO of Harbor Group.

Berkadia arranged financing totaling $930 million from Freddie Mac for the acquisition. The Freddie Mac financing encompasses 16 properties. Eleven of the properties were financed with a fixed rate vehicle for over $789 million. The remaining five properties were financed with a floating rate vehicle for over $138 million.

Freddie Mac previously financed the entire portfolio and securitized the loan last year.   

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