Dealmaker: Harbor Group International Acquires Phoenix Multifamily Property

Harbor Group International, Norfolk, Va., acquired Colter Park Apartments in Phoenix for $80.75 million.

Westwood Realty Associates President Steven Vegh brokered the off-market transaction; Northmarq, Minneapolis, arranged HGI’s Freddie Mac senior loan.

Located within Camelback Corridor in the West Uptown Phoenix submarket, Colter Park Apartments is supported by bars, restaurants and retail locations.

Greg Heller, Managing Director of Acquisitions at HGI, said Colter Park Apartments represents a value-add opportunity within a fundamentally strong Sunbelt market. “This transaction provides significant opportunity for operational upside as we expect to see high occupancy rates and steady rent growth over the next five years in the greater Phoenix region,” he said.

The property at 909 Colter Street sits within a 10-minute drive of Midtown Phoenix and provides direct access to the Valley Light Rail system, which give residents access to Midtown, Downtown and the Phoenix Sky Harbor International Airport. Nearby large employers include Banner Health, the City of Phoenix, Bank of America, U.S. Bank, Uber and WeWork.

HGI said it plans to invest $5 million to renovate the remaining vintage units as well as common area improvements to enhance the community’s curb appeal.

Colter Park Apartments marks HGI’s 15th overall investment in Phoenix.