Harbor Group Strikes $351M Refi of New Multifamily Portfolio With Garrett Companies
Harbor Group International, LLC has partnered with The Garrett Companies to refinance the construction debt on a new eight-property multifamily portfolio that spans across the Midwest and Sun Belt markets.
The deal was made through a $351 million loan facility provided by ACRE, with Walker & Dunlop arranging it. Harbor Group said its affiliates were involved in the refinancing.
The portfolio includes five assets in the Colorado Springs and Denver metropolitan statistical areas, with one each in the Minneapolis, Phoenix and Indianapolis metros. All together, the properties, built between 2024-26, combine to make up 1,573 multifamily units.
The assets are part of a larger 11-property portfolio, which has already been recapitalized by Harbor Group. The company noted that the refinancing provides more flexibility to make business decisions and boosts the asset's capital structure.
"This refinancing represents another important milestone for the portfolio and highlights the collaborative approach among all parties involved," said Eric Garrett, CEO of Garrett, in a statement.
"We continue to see strong operating performance across the assets and remain confident in the long-term fundamentals supporting these markets."
This move builds on the partnership between Garrett and Harbor. Last year, the two teamed up to recap a separate multifamily portfolio under a $630.5 million joint venture with Telis Group. The portfolio included a total of 11 assets, with eight of them located in Colorado.
Multifamily overall has faced challenges due to the influx of supply coming online — particularly in high-growth Sun Belt markets. Here's the good news for landlords: construction appears to be slowing dramatically, with Apartments.com and CoStar reporting in the first quarter that apartment starts were just 55,000 units, a 73% drop from their 2022 peak.
Source: GlobeSt/ALM