Affiliates of Harbor Group International, LLC (HGI), a privately-owned international real estate investment and management firm, working with Meridian Capital, has refinanced eight multifamily properties located in Maryland, Virginia and Pennsylvania, financing $513 million.
The properties were part of the Beacon Portfolio, a 24-property, 9,407-unit portfolio of apartment communities acquired by affiliates of HGI in November of 2017 for $1.8 billion.
“HGI continues to implement its proven investment plan for the properties in the Beacon Portfolio,” said T. Richard Litton, Jr., President of HGI, “We always look for opportunities to improve upon our assets’ financing terms, which in turn allows us to more effectively implement our investment plans and provide returns to our investors.”
Meridian Capital Group, who also provided investment advisory and mortgage brokerage services on the initial acquisition of the portfolio, worked with HGI to arrange the financing. The 10-year Freddie Mac loans were provided by Capital One Agency Finance and feature floating, SOFR-based rates and five years of interest-only payments.
“HGI has a long-standing relationship with Freddie Mac as a borrower, preferred equity partner and B-Piece investor,” said Litton, “HGI’s strong, consistent record when it comes to closing many types of transactions is key when it comes to securing attractive financing.”
Senior Vice President, Michael Maidhof, and Vice President, Molly Steckler, led the financing on behalf of Capital One.
“Capital One was thrilled to work with its partners at Meridian and Freddie Mac to close on this refinance for Harbor Group,” said Maidhof. “The new financing will allow Harbor Group to further effectuate its business plan and continue to improve operations and cash flow at each of the properties.”