Harbor Group Acquires $190M Apartment Portfolio

Mark Your Calendars: RealShare Apartments 2011, October 20 in Los Angeles.

BALTIMORE-Harbor Group International has picked up another large multifamily portfolio in the Mid-Atlantic: it has acquired 1,984 apartment units in six properties in the Baltimore area for $190 million. The seller was an affiliate of Sawyer Realty Holdings. It is the largest multifamily acquisition Harbor Group has made to date in the suburban Maryland market, T. Richard Litton, Jr., president of HGI tells GlobeSt.com. “We think the multifamily market is very strong right now, especially in this submarket,” Litton says. “We are definitely continuing to pursue opportunities in this area.” With this acquisition, the company now owns more than 3,300 units in suburban Maryland.

HGI plans to invest an additional $7.75 million, or $3,900 per unit, in the portfolio. The properties include Crosswinds at Rolling Road (808 units), Diamond Ridge (92 units), the Glens at Rolling Road (270 units), Granite Run (264 units), Rolling Wind (280 units) and the 270-unit Stratton Meadows. Al Cissel and Scott Melnick of Jones Lang LaSalle represented the seller in the transaction.

This transaction follows Harbor Group’s acquisition earlier this year of a 2,500 unit multifamily portfolio in southeastern Virginia. It was an eight-property, 2,508-unit portfolio, located in the Hampton Roads area of southeast Virginia, acquired for $165.9 million.

Right now the opportunities for multifamily acquisitions are strong, Litton says. “We have been fortunate to find two large apartment portfolios in addition to, occasionally, some stand-along opportunities,” he says, adding that pricing is getting tight, although that is not necessarily always the case with the larger portfolios. “There is less of a buyer pool that can do those.” Litton declined to comment on any additional purchases the company might make, other than to say he expects to close on additional multifamily properties over the next few months.