Westchase Apartments was one of
four acquired for $115M. Harbor
Group kicked in $10M in preferred
equity for the buy.

CREVE COEUR, MO-In its first transaction in conjunction with L3C Capital Partners LLC, Harbor Group International LLC funded a $10 million preferred equity investment to acquire a multifamily property portfolio in northwest St. Louis, MO. The portfolio consists of four multifamily properties totaling 1,447 units, which L3C Partners acquired from DRA Advisors LLC and Camden Property Trust for a total of $115 million.

The multifamily properties are

  • The 276-unit Cove West Apartments, 12400 Lighthouse Way Dr., Creve Coeur
  • The 160-unit Westchase Apartments, 10871 Chase Park Lane, Creve Coeur
  • The 591-unit Cross Creek Apartments, 807 Cross Creek Dr., Creve Coeur
  • The 420-unit Lakes Apartments, 36 Cedar Circle Dr., Lake St. Louis

The properties were built in the 1970s and 1980s, and the portfolio’s average occupancy is 95.5%. HFF represented the sellers in disposing of the assets.  Village Green has been retained to perform more than $8 million in property renovations and upgrades.

According to Harbor Group president T. Richard Litton, the St. Louis metro area isn’t necessarily a geographic sweet spot for the real estate investment and management firm, though the company does own and manage an office building downtown. However, with three of the four assets in upscale Creve Coeur, “that market is similar to markets in which we like to invest,” Litton tells GlobeSt.com. “The properties have a good occupancy history, have good access and visibility on major roadways and there are lots of retail and office sector jobs in the immediate area.”

Litton says Harbor Group is expanding its investment platform in attempts to find transactions and markets that make sense, especially when it comes to preferred equity investments. Though the preferred equity investments don’t have the upside a straight equity purchase might have, there’s also less risk.

“L3C had this under contract and they approached us,” he explains. “We dug into the real estate and submarket, and saw this type of investment made sense.” Litton goes on to say that Harbor Group has no immediate plans for further investments with L3C, but is more than willing to look at opportunities that might present themselves.