Portfolio spans 2,192 units with a total capitalization of $630.5 million
NORFOLK, Va., Jan. 15, 2025 /PRNewswire/ -- Affiliates of Harbor Group International, LLC ("HGI"), a privately owned international real estate investment and management firm, today announced a joint venture with The Garrett Companies and Telis Group to fund the $630.5 million recapitalization of an 11-asset multifamily development portfolio.
The transaction involved a complex financial structure requiring coordination with nine different lenders across a diverse range of markets. The deal underscores HGI's ability navigate multi-faceted financial structures, securing long-term growth and stability for its investors.
The portfolio spans 2,192 units across four states, with eight properties in Colorado, one property in Minnesota, one property in Indiana and one property in Arizona. Development of the properties began from 2021 to 2023, with the portfolio now approximately 75% complete, allowing for an expedited timeline of delivery and stabilization compared to a standard development project.
"This recapitalization was a multi-step effort that required extensive negotiations, meticulous planning and alignment across multiple financial institutions and markets. The successful outcome is a testament to our team's deep expertise in managing complex transactions," said Yisroel Berg, Chief Investment Officer – Multifamily at HGI. "Through this recapitalization, we have exposure to a broad range of high-growth markets as well as strong development partners in The Garrett Companies and Telis Group as we execute a project of this scale to provide more housing across the U.S."
"This partnership presents an exciting opportunity to leverage our expertise in multifamily development across a wide array of markets across the nation. With a deep understanding of local fundamentals and evolving trends, we are positioned to deliver high-quality, sustainable projects that meet the growing demand for housing," said Eric Garrett, CEO of The Garrett Companies.
Mo Beler, Co-Head of Walker and Dunlop's Structured Finance Group, and Aaron Appel, Co-Head of the NYC Capital Markets practice, facilitated the transaction. Carly Saviano, Partner and Co-Chair of Willkie's Real Estate Department provided counsel.
"This complex recapitalization highlights the strength of institutional investment in quality multifamily developments," said Beler. "By uniting sophisticated sponsors such as HGI, The Garrett Companies, Telis Group and other lending partners, we closed the transaction swiftly, reflecting strong demand for well-located assets in growth markets despite challenging capital conditions."
This transaction marks HGI's first multifamily investment of 2025. The firm concluded 2024 having invested $909 million across 25 multifamily communities.
About Harbor Group International
Harbor Group International, LLC, and its affiliates control an investment portfolio of approximately $20 billion, including 57,000 apartment units in the United States and 5.0 million square feet of commercial space throughout the United States and the United Kingdom. In addition to its corporate headquarters in Norfolk, Virginia, HGI maintains offices in New York, Baltimore, Los Angeles, and Tel Aviv. Follow HGI on LinkedIn.
About The Garrett Companies
The Garrett Companies a full-service Multifamily Development, Construction, and Management team. Their team of experts works in unison to entitle, develop, build, and manage multifamily projects across the country. They are currently active in 6 states and have completed over 60 projects in 17 states. After delivering over 18,000 apartment homes since 2014, they have become industry leaders in forecasting trends and delivering living options that find quick success in the marketplace. Their proprietary market research criteria paired with a disciplined business model reduces risk and allows the creation of desirable, high-end multifamily housing that produces superior risk-adjusted returns. As a complement to high-end multifamily developments, they also specialize in mixed-use, retail, and office. Follow The Garrett Companies on LinkedIn
About Telis Group
Telis Group is a Fort Worth, Texas based real estate private equity manager co-founded by RD Khoury, Keller Reese, and Eric Garrett, specializing in providing capital solutions for multifamily developers and operators with a focus in Sun Belt and Mountain West markets.
After forming the firm in 2023, Telis successfully closed its debut Telis Co-GP Opportunity Fund, with institutional backing, and currently manages a $1.3B portfolio, representing over 5,800 units across 9 states and 11 markets. Telis anticipates closing on another ~3,000 units in 2025 through its basis focused development strategy as it expands its footprint and delivers on its mission to provide investors access to high-quality US rental housing.
Building on its success, and exclusive partnership with The Garrett Companies, Telis is launching the Telis Direct Opportunity Fund in 2025. The Fund will continue to address the national housing shortage by capitalizing a pre-identified pipeline of institutional-quality, multifamily development projects. Follow Telis on LinkedIn
About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States. Our ideas and capital create communities where people live, work, shop, and play. The diversity of our people, breadth of our brand and technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.
Media Contact:
Prosek Partners for HGI
Pro-hgi@prosek.com
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SOURCE Harbor Group International, LLC
