The New York office for Hodges Ward Elliott (HWE) brokered the sale of a 38-building, 1,000 unit multifamily portfolio in the Bronx to Harbor Group International in partnership with Emerald Equities and York Capital.
Harbor said affiliates of the company funded a $25 million investment the portfolio. The investment includes $16 million of preferred equity and $9 million of common equity.
The portfolio includes 935 rental apartments and 24 ground floor retail spaces. The cumulative purchase price was $140 million (approximately $146,000 per unit).
“The Bronx is an evolving market with significant potential for capital appreciation as the area continues its renaissance. The rental market has shown strong growth with potential for greater rent growth as well,” said T. Richard Litton, Jr., president of Harbor Group International.
The portfolio was marketed exclusively by Daniel Parker, Will Silverman and Paul Gillen of HWE and represents the largest portfolio sold in the Bronx since 2013.
This is also Harbor Group International’s first multifamily purchase in the Bronx market, a significant addition to their already extensive
$3.5 billion real estate portfolio, comprised of multifamily, office, hotel and retail properties.
This portfolio is comprised of several clusters of walk-up mixed-use buildings spread throughout Mott Haven, Hunts Point, Lower Concourse, Little Italy, Belmont, Fordham and Bedford Park.
“A lot of smart money is acquiring large portfolios of non-luxury multifamily because they offer safe cash flows and enjoy demand from a deep pool of renters. For many bidders, it was their first property tour of the Bronx and the response was very positive for this product and location,” said Parker, a Senior Vice President at HWE.
“This transaction makes clear that we are on the front end of more institutional investment in the Bronx.ˮ
HGI continues to pursue and fund preferred equity and mezzanine loan opportunities.