Portfolio spans 2,192 units with a total
capitalization of $630.5
million
NORFOLK,
Va., Jan. 15, 2025 /PRNewswire/
-- Affiliates of Harbor Group International, LLC ("HGI"), a
privately owned international real estate investment and management
firm, today announced a joint venture with The Garrett Companies
and Telis Group to fund the $630.5
million recapitalization of an 11-asset multifamily
development portfolio.
The transaction involved a complex financial structure requiring
coordination with nine different lenders across a diverse range of
markets. The deal underscores HGI's ability navigate multi-faceted
financial structures, securing long-term growth and stability for
its investors.
The portfolio spans 2,192 units across four states, with eight
properties in Colorado, one
property in Minnesota, one
property in Indiana and one
property in Arizona. Development
of the properties began from 2021 to 2023, with the portfolio now
approximately 75% complete, allowing for an expedited timeline of
delivery and stabilization compared to a standard development
project.
"This recapitalization was a multi-step effort that required
extensive negotiations, meticulous planning and alignment across
multiple financial institutions and markets. The successful outcome
is a testament to our team's deep expertise in managing complex
transactions," said Yisroel Berg,
Chief Investment Officer – Multifamily at HGI. "Through this
recapitalization, we have exposure to a broad range of high-growth
markets as well as strong development partners in The Garrett
Companies and Telis Group as we execute a project of this scale to
provide more housing across the U.S."
"This partnership presents an exciting opportunity to leverage
our expertise in multifamily development across a wide array of
markets across the nation. With a deep understanding of local
fundamentals and evolving trends, we are positioned to deliver
high-quality, sustainable projects that meet the growing demand for
housing," said Eric Garrett, CEO of
The Garrett Companies.
Mo Beler, Co-Head of Walker and
Dunlop's Structured Finance Group, and Aaron Appel, Co-Head of the NYC Capital Markets
practice, facilitated the transaction. Carly Saviano, Partner and Co-Chair of Willkie's
Real Estate Department provided counsel.
"This complex recapitalization highlights the strength of
institutional investment in quality multifamily developments," said
Beler. "By uniting sophisticated sponsors such as HGI, The Garrett
Companies, Telis Group and other lending partners, we closed the
transaction swiftly, reflecting strong demand for well-located
assets in growth markets despite challenging capital
conditions."
This transaction marks HGI's first multifamily investment of
2025. The firm concluded 2024 having invested $909 million across 25 multifamily
communities.
About Harbor Group International
Harbor Group
International, LLC, and its affiliates control an investment
portfolio of approximately $20
billion, including 57,000 apartment units in the United States and 5.0 million square feet
of commercial space throughout the United
States and the United
Kingdom. In addition to its corporate headquarters in
Norfolk, Virginia, HGI maintains
offices in New York, Baltimore, Los
Angeles, and Tel Aviv.
Follow HGI on LinkedIn.
About The Garrett Companies
The Garrett Companies a
full-service Multifamily Development, Construction, and Management
team. Their team of experts works in unison to entitle, develop,
build, and manage multifamily projects across the country. They are
currently active in 6 states and have completed over 60 projects in
17 states. After delivering over 18,000 apartment homes since 2014,
they have become industry leaders in forecasting trends and
delivering living options that find quick success in the
marketplace. Their proprietary market research criteria paired with
a disciplined business model reduces risk and allows the creation
of desirable, high-end multifamily housing that produces superior
risk-adjusted returns. As a complement to high-end multifamily
developments, they also specialize in mixed-use, retail, and
office. Follow The Garrett Companies on LinkedIn
About Telis Group
Telis Group is a Fort Worth, Texas based real estate private
equity manager co-founded by RD Khoury, Keller Reese, and Eric
Garrett, specializing in providing capital solutions for
multifamily developers and operators with a focus in Sun Belt and
Mountain West markets.
After forming the firm in 2023, Telis successfully closed its
debut Telis Co-GP Opportunity Fund, with institutional backing, and
currently manages a $1.3B portfolio,
representing over 5,800 units across 9 states and 11 markets. Telis
anticipates closing on another ~3,000 units in 2025 through its
basis focused development strategy as it expands its footprint and
delivers on its mission to provide investors access to high-quality
US rental housing.
Building on its success, and exclusive partnership with The
Garrett Companies, Telis is launching the Telis Direct Opportunity
Fund in 2025. The Fund will continue to address the national
housing shortage by capitalizing a pre-identified pipeline of
institutional-quality, multifamily development projects.
Follow Telis on LinkedIn
About Walker & Dunlop
Walker &
Dunlop (NYSE: WD) is one of the largest commercial real estate
finance and advisory services firms in the United States. Our ideas and capital
create communities where people live, work, shop, and play. The
diversity of our people, breadth of our brand and technological
capabilities make us one of the most insightful and client-focused
firms in the commercial real estate industry.
Media Contact:
Prosek Partners for HGI
Pro-hgi@prosek.com
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SOURCE Harbor Group International, LLC
