CBRE and Harbor Group International have teamed up to acquire a five-property multifamily in the New England area for $740 million. There are a total of 2,719 units included.
For both firms, the joint venture will build on their Greater Boston portfolios. Counting the $740 million buy, Harbor Group alone now manages more than 3,600 units in the region.
"The New England region continues to demonstrate some of the strongest multifamily fundamentals in the country," Yisroel Berg, chief investment officer of multifamily at HGI, said in a statement.
"We are excited to partner with CBRE Investment Management and look forward to implementing this value-add strategy on behalf of both our investors and residents, while preserving the stable, high occupancies that made this portfolio so attractive."
Matt Tepper, head of Americas for indirect real estate strategies at CBRE Investment Management, added that the move aligns with the firm's plans of making bets on premier quality multifamily assets.
In recent months, rent growth overall has been mostly weak. However, the Northeast has been a market defying the broader trend. Rents in the region in June rose by 2.4 percent year-over-year, as the national average showed a drop of 0.9 percent, according to a report from Apartments.com.
So far this year, HGI has been aggressive on the offense, with year-to-date multifamily acquisition volume now up to roughly $2.2 billion.
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