NEW YORK, Jan. 16, 2020 /PRNewswire/ -- Newmark Knight Frank (NKF) has announced the
sale of Aragon Holdings, LLC's national portfolio of apartment
properties to Harbor Group International (HGI), a global real
estate investment and management firm, for $1.85 billion. The firm's Capital Markets
Strategies and Multifamily Capital Markets groups provided the
financing and were led by Henry
Stimler, Bill Weber and
Matt Mense. NKF's Zach Springer brokered the sale and leveraged
NKF's nationwide platform, cooperating with the portfolio team in
local offices comprised of Mac
Crowther, Brad Goff,
Terrance Hunt, Brian Murphy and Scott
Ramey.
The transaction is the largest multifamily sale since 2016 and
the fifth largest ever recorded in the
U.S. 1 The portfolio includes 36
properties (composed of 13,243 units) spanning nine primary and
secondary markets across eight U.S. states. The portfolio is most
highly concentrated in Dallas/Fort
Worth and Denver, while
Houston, San Antonio, Atlanta, Orlando, Phoenix, Salt Lake
City, Albuquerque, St.
Louis and Kansas City (MO)
comprised the remaining markets.
"This was a landmark deal for us in terms of size and scope as
we were able to work across all Newmark business lines to
successfully achieve spectacular results for both the buyer and
seller," stated Anthony Orso,
president of NKF's Capital Markets Strategies group.
NKF arranged approximately $1
billion of combined new financing, while $400 million of existing debt was assumed
directly by HGI. The new debt was placed in two separate pools: an
NKF-originated fixed-rate loan with Freddie Mac and a short-term
floating-rate loan arranged by Bank of America.
"NKF has ascended to the top of the list of firms who execute
large multifamily portfolio investment sales transactions," said
Blake Okland, vice chairman, head of
multifamily investment sales. "Our growing success is based on our
ability to leverage deep-rooted expertise in the local markets,
coupled with a strong network of national and international
investors working seamlessly together to secure portfolio
transactions of this size."
HGI plans to invest approximately $90
million in property upgrades and enhancements throughout the
portfolio, including $51.5 million of
in-unit renovations. Harbor Group Management Company, HGI's
in-house property management firm, will assume management of the
portfolio effective immediately.
1Real Capital Analytics
About Newmark Knight
Frank
Newmark Knight
Frank ("NKF"), operated by Newmark Group, Inc. ("Newmark
Group") (NASDAQ: NMRK), is one of the world's leading and most
trusted commercial real estate advisory firms, offering a complete
suite of services and products for both owners and occupiers.
Together with London-based partner
Knight Frank and independently-owned offices, NKF's 18,000
professionals operate from approximately 480 offices on six
continents. NKF's investor/owner services and products include
investment sales, agency leasing, property management, valuation
and advisory, diligence, underwriting, government-sponsored
enterprise lending, loan servicing, debt and structured finance and
loan sales. Occupier services and products include tenant
representation, real estate management technology systems,
workplace and occupancy strategy, global corporate services
consulting, project management, lease administration and facilities
management. For further information,
visit www.ngkf.com.
Discussion of Forward-Looking Statements about
Newmark
Statements in this document regarding Newmark that
are not historical facts are "forward-looking statements" that
involve risks and uncertainties, which could cause actual results
to differ from those contained in the forward-looking statements.
Except as required by law, Newmark undertakes no obligation to
update any forward-looking statements. For a discussion of
additional risks and uncertainties, which could cause actual
results to differ from those contained in the forward-looking
statements, see Newmark's Securities and Exchange Commission
filings, including, but not limited to, the risk factors and
Special Note on Forward-Looking Information set forth in these
filings and any updates to such risk factors and Special Note on
Forward-Looking Information contained in subsequent reports on Form
10-K, Form 10-Q or Form 8-K.
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SOURCE Newmark Knight Frank