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Harbor Group International (HGI) has secured a $200.6 million debt package to refinance most of a Southeast multifamily portfolio it acquired two years ago, Commercial Observer can first report.
Newmark (NMRK)’s lending arm provided the Freddie Mac (FMCC)-backed fixed-rate loan on seven properties in HGI’s Southern Piedmont Portfolio totalling 1,920 units in North Carolina and Virginia.
The deal was led by Newmark’s multifamily capital markets debt and equity team of Henry Stimler, Bill Weber, Matthew Mense, Daniel Sarsfield and Ricky Warner.
HGI purchased the eight-property Southern Piedmont Portfolio for $309 million in early 2021 from a joint venture between McDowell Properties and Angelo Gordon. Newmark supplied a $242 million Freddie Mac-backed debt package consisting of a series of floating-rate loans to help fund the deal.
“HGI have been great stewards of the Southern Piedmont Portfolio since they acquired the assets,” Weber said in a statement. “Due to their work on the assets, the properties have increased residents’ retention and overall performance, and we worked with Freddie Mac on the refinancing to lock in favorable long-term fixed rates and reduce HGI’s exposure to increasing short-term floating rates.”
Norfolk, Va,-based HGI has spent nearly $3 million in capital improvements since purchasing the properties in 2021. The portfolio includes Harlowe Apartments and The Residences at West Mint in Charlotte; 200 Braehill, Corners at Crystal Lake and Mill Creek Flats in Winston-Salem; Woodlake Reserve in Durham; and The Samuel in Hampton, Va.
Officials at HGI did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
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