HOUSTON – (By Dale King, Realty News Report) – A commercial real estate advisory firm has announced the sale of a national portfolio of apartment properties valued at $1.85 billion, a roster that includes 13 developments totaling 5,189 units in Texas alone.
Newmark Knight Frank said the sale of Aragon Holdings LLC’s property register to Harbor Group International, a global real estate investment and management firm, is the largest multifamily purchase since 2016 and the fifth-largest, multi-unit property transaction in U.S. history.
The portfolio includes 36 properties (made up of 13,243 units) spanning nine primary and secondary markets across eight U.S. states. The portfolio is most highly concentrated in Dallas/Fort Worth and Denver, while Houston, San Antonio, Atlanta, Orlando, Phoenix, Salt Lake City, Albuquerque, St. Louis and Kansas City, Missouri, comprise the remaining markets.
“This was a landmark deal for us in terms of size and scope as we were able to work across all Newmark business lines to successfully achieve spectacular results for both the buyer and seller,” said Anthony Orso, president of NKF’s Capital Markets Strategies group. Newmark Knight Frank is operated by Newmark Group, Inc.
The count of Aragon Holding LLC’s properties includes three in Houston: the 392-apartment Reserve at Windmill Lakes, 9988 Windmill Lakes; the 711-unit Villages at Meyerland, 8900 Chimney Road and the 556-unit Walden Pond, 12850 Whittington.
Other Texas complexes on the list include the 836-unit 8500 Harwood in Richland Hills; 444-unit Arbrook Park in Arlington; 208-unit Reserve at Pebble Creek in Plano; the 342-unit Rockbrook Creek in Lewisville; the 208-unit Somerset at Spring Creek in Plano; 256-unit The Fairway, also in Plano; 312-unit The Lodge at River Creek in Fort Worth; 364-unit The Madison and the 332-unit Vail Quarters, both in Dallas, and Carmel at Deerfield, with 228 units, in San Antonio.
“NKF has ascended to the top of the list of firms who execute large multifamily portfolio investment sales transactions,” noted Blake Okland, vice chairman and head of multifamily investment sales. “Our growing success is based on our ability to leverage deep-rooted expertise in the local markets, coupled with a strong network of national and international investors working seamlessly together to secure portfolio transactions of this size.”
The firm’s Capital Markets Strategies and Multifamily Capital Markets groups provided the financing and were led by Henry Stimler, Bill Weber and Matt Mense. NKF’s Zach Springer brokered the sale and leveraged NKF’s nationwide platform, cooperating with the portfolio team in local offices comprised of Mac Crowther, Brad Goff, Terrance Hunt, Brian Murphy and Scott Ramey.
NKF arranged about $1 billion of combined new financing, while $400 million of existing debt was assumed directly by HGI. The new debt was placed in two separate pools: an NKF-originated fixed-rate loan with Freddie Mac and a short-term floating-rate loan arranged by Bank of America.
HGI plans to invest about $90 million in property upgrades and enhancements throughout the portfolio, including $51.5 million of in-unit renovations.
Harbor Group Management Company, HGI’s in-house property administration firm, assumes management of the portfolio immediately.
Jan. 27, 2020 Realty News Report Copyright 2020
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