Harbor Group International (HGI), a privately owned real estate investment and management firm, has sold an 807-unit Class A apartment community in Kansas City, Mo., to California-based Landmark Realty for $81 million.

The Coach House is one of the 36 properties that was acquired by an HGI affiliate in January for $1.85 billion from Aragon Holdings. The Sunbelt Portfolio investment included 13,243 units in primary and strong markets stretching from Arizona to Florida.

“HGI acquired the Sunbelt Portfolio to continue its successful strategy of buying wholesale and selling retail as individual assets achieve their business plans,” said T. Richard Litton Jr., president of HGI. “During our due diligence process on the Sunbelt Portfolio, Coach House was identified for a sale early in our holding period. The pricing on the sale exceeded our initial projections, and we are very pleased with the transaction.”

Berkadia’s Mid Markets Group overcame challenges related to the COVID-19 pandemic to complete the sale on behalf of HGI, with the deal closing June 30.

“This deal already had a number of complicating factors that made closing more difficult than usual. Not the least of which was the addition of the pandemic shutdown which hit almost immediately after the parties went under contract,” said Alex Blagojevich, a senior managing director at Berkadia. “As a result, accessing the equity to make the acquisition became more complicated, largely because both lender and investor guidelines changed almost overnight. It took a full team effort to overcome these challenges. In the end, not only did we get it done, but we were also able to preserve the original terms—as they remained unchanged through closing.”

According to HGI, it will continue to execute individual investment plans for the other properties in the Sunbelt Portfolio, tracking market conditions and selling on an asset-by-asset basis when the timing is right.