Dealmaker: Harbor Group International, Cammeby’s Acquire $1B Multifamily Portfolio

Harbor Group International and Cammeby’s International Group acquired a 5,302-unit multifamily property portfolio for $1.05 billion.

Eastdil Secured, New York, brokered the transaction and advised on the debt alongside Meridian Capital Group, New York. Lawrence H. Bryant at Williams Mullen served as counsel to HGI and Steven Fleissig of Greenberg Traurig served as counsel to the seller.

The portfolio includes 41 workforce housing communities in north, central and south New Jersey, with a concentration in Union, Morris and Essex counties. Most properties are in suburban markets near major employers including Prudential Financial, Johnson & Johnson, Bayer Corp. and Quest Diagnostics.

“This portfolio offers significant value-add potential and mark-to-market opportunity amid growing demand for housing outside of large urban cities,” said Richard Litton, HGI President.

HGI plans to invest $46 million for capital improvements and enhancements across the properties. The firm will renovate 50 percent of interior units and invest in operational improvements throughout the portfolio.

“Working in direct coordination with Capital One and Freddie Mac allowed us to secure a combination of fixed- and floating-rate financing that provided optimal flexibility in the short-term while allowing them to achieve their long-term goals for the assets,” said Abe Hirsch, Senior Managing Director at Meridian Capital Group.