Affiliates of Harbor Group International (HGI), a privately owned international real estate investment and management firm based in Norfolk, Virginia, acquired The Vermont, a multifamily high-rise community in Los Angeles’ Koreatown neighborhood. This adds to HGI’s growing footprint in Southern California, following the acquisition of three communities in Long Beach in July. This is the firm’s 10th investment in the region.
The Vermont, built in 2014, features 464 apartments above 31,000 square feet of retail space across two high-rise towers, which are connected by a seventh-floor sky lobby that features a library lounge, a club lounge, and a fitness center. In addition, the seventh floor offers nearly 27,500 square feet of outdoor space, including a resort-style pool and spa, a yoga garden, dog parks, and multiple dining and entering spaces. According to HGI, it plans to invest approximately $22.3 million in capital improvements to enhance the community with common area and interior hallway renovations as well as the upgrade of select units.
“The Vermont offers the central location and expansive amenities today’s residents seek when choosing a home,” said managing director Greg Heller. “Through this acquisition and investment, we see a significant value-add opportunity, positioning the community to better compete with newer Class A properties in the neighborhood.”
The community is located at one of the city’s busiest intersections, offering convenient access to various destinations. It also is across the street from Los Angeles Metro Rail’s Wilshire/Vermont station, easily connecting residents to nearby downtown.
Cushman & Wakefield represented both parties in the transaction. “The Vermont received interest from around the globe by investors that recognized the compelling cost basis versus new construction, the prospects for accretive additional property upgrades, and the strong support for above national average rent growth driven by the numerous knowledge-based employment centers that surround the asset,” said Marc Renard, executive vice chair of the Cushman & Wakefield’s Capital Markets Group who led the transaction team.
