A joint venture between Harbor Group International (HGI) and Cammeby’s International Group has acquired a portfolio of multifamily assets in New Jersey for $1.05 billion. The portfolio includes 41 workforce housing communities with 5,302 units. The seller was not disclosed.
The portfolio is across 14 cities in northern, central, and southern New Jersey, with a concentration in Essex, Morris, and Union. A majority of the portfolio is in key suburban markets near major New Jersey employers, such as Prudential Financial, Johnson & Johnson, Bayer Corp., and Quest Diagnostics, as well as near New York City and Philadelphia.
“As we continue to expand our investment platform, the acquisition of the Garden State portfolio represents the large-scale, attractive opportunities Harbor Group International identifies for our investors,” said Richard Litton, HGI president. “This portfolio offers significant value-add potential and mark-to-market opportunity amid growing demand for housing outside of large urban cities. We are pleased to have an experienced partner in Cammeby’s as we embark on this venture, given their strong presence in the region.”
According to HGI, it will invest approximately $46 million for capital improvements and enhancements across the properties. The firm plans to renovate half of the interior units as well as invest in operational improvements throughout the portfolio.
HGI’s Harbor Group Management Co. will assume management of 10 of the assets.
Eastdil Secured brokered the transaction and advised on the debt with Meridian Capital Group. Lawrence H. Bryant of Williams Mullen served as counsel to HGI, and Steven Fleissig of Greenberg Traurig served as seller’s counsel.
“Working in direct coordination with Capital One and Freddie Mac allowed us to secure a combination of fixed- and floating-rate financing that provided optimal flexibility in the short term while allowing them to achieve their long-term goals for the assets,” said Abe Hirsch, senior managing director at Meridian Capital Group.