Harbor Group International, The Garrett Companies and Telis Group Form Joint Venture to Recapitalize 11-Asset Multifamily Portfolio
Harbor Group International (HGI) has formed a joint venture with The Garrett Companies and Telis Group for a $630.5 million recapitalization of an 11-asset multifamily portfolio. The portfolio encompasses 2,192 units across four states: eight properties in Colorado, and one each in Minnesota, Indiana, and Arizona.
The development of these properties began between 2021 and 2023, with the portfolio currently 75% complete. The transaction involved coordinating with nine different lenders across various markets. This marks HGI's first multifamily investment of 2025, following their 2024 investments of $909 million across 25 multifamily communities.
Harbor Group International (HGI) ha formato una joint venture con The Garrett Companies e Telis Group per una ricapitalizzazione di 630,5 milioni di dollari di un portafoglio multifamiliare composto da 11 asset. Il portafoglio comprende 2.192 unità distribuite su quattro stati: otto proprietà in Colorado e una ciascuna in Minnesota, Indiana e Arizona.
Lo sviluppo di queste proprietà è iniziato tra il 2021 e il 2023, con il portafoglio attualmente completo al 75%. La transazione ha comportato il coordinamento con nove diversi finanziatori in vari mercati. Questo segna il primo investimento multifamiliare di HGI per il 2025, dopo i loro investimenti nel 2024 di 909 milioni di dollari in 25 comunità multifamiliari.
Harbor Group International (HGI) ha formado una asociación con The Garrett Companies y Telis Group para una recapitalización de 630.5 millones de dólares de un portafolio multifamiliar de 11 activos. El portafolio abarca 2,192 unidades en cuatro estados: ocho propiedades en Colorado y una en Minnesota, Indiana y Arizona.
El desarrollo de estas propiedades comenzó entre 2021 y 2023, y actualmente el portafolio está completo al 75%. La transacción involucró la coordinación con nueve prestamistas diferentes en varios mercados. Esta marca la primera inversión multifamiliar de HGI para 2025, tras sus inversiones de 909 millones de dólares en 25 comunidades multifamiliares en 2024.
하버 그룹 인터내셔널 (HGI)는 더 개릿 컴퍼니와 텔리스 그룹과 함께 11개의 자산으로 구성된 다가구 포트폴리오에 대해 6억 3천만 달러 규모의 자본 재조정을 위한 조인트 벤처를 형성했습니다. 이 포트폴리오는 해외 4개 주에서 2,192개 유닛을 포함하고 있으며, 콜로라도에서 8개, 미네소타, 인디애나, 아리조나에서 각각 1개씩의 자산이 있습니다.
이러한 자산의 개발은 2021년과 2023년 사이에 시작되었으며, 현재 포트폴리오는 75% 완료 상태입니다. 이 거래는 다양한 시장에서 아홉 명의 대출기관과의 조정을 포함했습니다. 이는 HGI의 2025년 첫 다가구 투자로, 2024년에는 25개의 다가구 커뮤니티에 9억 900만 달러를 투자했습니다.
Harbor Group International (HGI) a formé une coentreprise avec The Garrett Companies et le Telis Group pour une recapitalisation de 630,5 millions de dollars d'un portefeuille multifamilial de 11 actifs. Le portefeuille comprend 2 192 unités réparties sur quatre États : huit propriétés au Colorado et une dans chacun du Minnesota, de l'Indiana et de l'Arizona.
Le développement de ces propriétés a commencé entre 2021 et 2023, le portefeuille étant actuellement complété à 75%. La transaction a nécessité la coordination avec neuf prêteurs différents sur divers marchés. Cela marque le premier investissement multifamilial de HGI pour 2025, après leurs investissements de 909 millions de dollars dans 25 communautés multifamiliales en 2024.
Harbor Group International (HGI) hat ein Joint Venture mit The Garrett Companies und der Telis Group für eine Rekapitalisierung von 630,5 Millionen Dollar für ein 11-Asset-Multifamilienportfolio gebildet. Das Portfolio umfasst 2.192 Einheiten über vier Bundesstaaten: acht Objekte in Colorado und je eines in Minnesota, Indiana und Arizona.
Die Entwicklung dieser Objekte begann zwischen 2021 und 2023, wobei das Portfolio derzeit zu 75% fertiggestellt ist. Die Transaktion erforderte die Koordination mit neun verschiedenen Kreditgebern in verschiedenen Märkten. Dies markiert HGI's erste Investition in Mehrfamilienhäuser für 2025, nach ihren Investitionen von 909 Millionen Dollar in 25 Mehrfamiliengemeinschaften im Jahr 2024.
- Portfolio recapitalization valued at $630.5 million across 11 properties
- Portfolio is 75% complete, enabling faster delivery and stabilization
- Strategic presence in high-growth markets across four states
- Strong 2024 performance with $909 million invested in 25 multifamily communities
- Complex financial structure requiring coordination with nine different lenders
- Challenging capital market conditions
Insights
This
The complexity of coordinating with nine different lenders in the current challenging capital markets environment makes this deal particularly noteworthy. Harbor Group International's ability to execute such a sophisticated transaction demonstrates strong institutional capabilities and market confidence. Their 2024 track record of
The expedited timeline from development to stabilization compared to standard projects suggests potential for accelerated NOI growth and earlier-than-typical cash flow generation. This could translate to enhanced risk-adjusted returns for investors, particularly given the current market's supply-demand dynamics in the multifamily sector.
The transaction's structure offers several compelling financial advantages in the current market environment. First, the multi-lender approach suggests optimization of capital costs across different debt tranches, potentially leading to a more favorable weighted average cost of capital. Second, the recapitalization provides an exit opportunity for early investors while bringing in institutional capital for the next phase of development and stabilization.
The timing is particularly strategic given the challenging capital market conditions. With interest rates expected to begin declining in 2025, securing long-term financing now could provide significant cost advantages as the portfolio stabilizes. The deal's successful execution despite market headwinds indicates strong underlying fundamentals and institutional confidence in the multifamily sector's growth prospects.
The portfolio's scale and diversification characteristics make it an attractive institutional-grade investment, potentially setting the stage for future securitization or portfolio-level financing opportunities. This could create additional value-enhancement opportunities through capital structure optimization.
Portfolio spans 2,192 units with a total capitalization of
The transaction involved a complex financial structure requiring coordination with nine different lenders across a diverse range of markets. The deal underscores HGI's ability navigate multi-faceted financial structures, securing long-term growth and stability for its investors.
The portfolio spans 2,192 units across four states, with eight properties in
"This recapitalization was a multi-step effort that required extensive negotiations, meticulous planning and alignment across multiple financial institutions and markets. The successful outcome is a testament to our team's deep expertise in managing complex transactions," said Yisroel Berg, Chief Investment Officer – Multifamily at HGI. "Through this recapitalization, we have exposure to a broad range of high-growth markets as well as strong development partners in The Garrett Companies and Telis Group as we execute a project of this scale to provide more housing across the
"This partnership presents an exciting opportunity to leverage our expertise in multifamily development across a wide array of markets across the nation. With a deep understanding of local fundamentals and evolving trends, we are positioned to deliver high-quality, sustainable projects that meet the growing demand for housing," said Eric Garrett, CEO of The Garrett Companies.
Mo Beler, Co-Head of Walker and Dunlop's Structured Finance Group, and Aaron Appel, Co-Head of the NYC Capital Markets practice, facilitated the transaction. Carly Saviano, Partner and Co-Chair of Willkie's Real Estate Department provided counsel.
"This complex recapitalization highlights the strength of institutional investment in quality multifamily developments," said Beler. "By uniting sophisticated sponsors such as HGI, The Garrett Companies, Telis Group and other lending partners, we closed the transaction swiftly, reflecting strong demand for well-located assets in growth markets despite challenging capital conditions."
This transaction marks HGI's first multifamily investment of 2025. The firm concluded 2024 having invested
About Harbor Group International
Harbor Group International, LLC, and its affiliates control an investment portfolio of approximately
About The Garrett Companies
The Garrett Companies a full-service Multifamily Development, Construction, and Management team. Their team of experts works in unison to entitle, develop, build, and manage multifamily projects across the country. They are currently active in 6 states and have completed over 60 projects in 17 states. After delivering over 18,000 apartment homes since 2014, they have become industry leaders in forecasting trends and delivering living options that find quick success in the marketplace. Their proprietary market research criteria paired with a disciplined business model reduces risk and allows the creation of desirable, high-end multifamily housing that produces superior risk-adjusted returns. As a complement to high-end multifamily developments, they also specialize in mixed-use, retail, and office. Follow The Garrett Companies on LinkedIn
About Telis Group
Telis Group is a
After forming the firm in 2023, Telis successfully closed its debut Telis Co-GP Opportunity Fund, with institutional backing, and currently manages a
Building on its success, and exclusive partnership with The Garrett Companies, Telis is launching the Telis Direct Opportunity Fund in 2025. The Fund will continue to address the national housing shortage by capitalizing a pre-identified pipeline of institutional-quality, multifamily development projects. Follow Telis on LinkedIn
About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in
Media Contact:
Prosek Partners for HGI
Pro-hgi@prosek.com
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SOURCE Harbor Group International, LLC
FAQ
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