Harbor Group International, The Garrett Companies and Telis Group Form Joint Venture to Recapitalize 11-Asset Multifamily Portfolio
Rhea-AI Summary
Harbor Group International (HGI) has formed a joint venture with The Garrett Companies and Telis Group for a $630.5 million recapitalization of an 11-asset multifamily portfolio. The portfolio encompasses 2,192 units across four states: eight properties in Colorado, and one each in Minnesota, Indiana, and Arizona.
The development of these properties began between 2021 and 2023, with the portfolio currently 75% complete. The transaction involved coordinating with nine different lenders across various markets. This marks HGI's first multifamily investment of 2025, following their 2024 investments of $909 million across 25 multifamily communities.
Positive
- Portfolio recapitalization valued at $630.5 million across 11 properties
- Portfolio is 75% complete, enabling faster delivery and stabilization
- Strategic presence in high-growth markets across four states
- Strong 2024 performance with $909 million invested in 25 multifamily communities
Negative
- Complex financial structure requiring coordination with nine different lenders
- Challenging capital market conditions
News Market Reaction
On the day this news was published, WD gained 6.36%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Portfolio spans 2,192 units with a total capitalization of
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
"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
"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
About Harbor Group International
Harbor Group International, LLC, and its affiliates control an investment portfolio of approximately
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
After forming the firm in 2023, Telis successfully closed its debut Telis Co-GP Opportunity Fund, with institutional backing, and currently manages a
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
Media Contact:
Prosek Partners for HGI
Pro-hgi@prosek.com
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SOURCE Harbor Group International, LLC
FAQ
What is the total value and size of HGI's 2025 multifamily portfolio recapitalization?
How many properties does HGI's new portfolio include in each state?
What is the current completion status of HGI's new multifamily portfolio?
How much did HGI invest in multifamily communities in 2024?
How many lenders were involved in HGI's portfolio recapitalization?
