HOUSTON – (By Dale King, Realty News Report) – A commercial real estate advisory firm has announced the sale of a national apartment portfolio valued at $1.85 billion, including 13 developments totaling 5,189 units in Texas.
Newmark Knight Frank reported the disposition of Aragon Holdings LLC’s portfolio to Harbor Group International (HGI), a global real estate investment and management firm. The transaction is the largest U.S. multifamily acquisition since 2016 and ranks among the five largest multi-unit property deals in U.S. history.
The nationwide package comprises 36 properties and 13,243 units across nine primary and secondary markets in eight states. The portfolio is heavily concentrated in the Dallas/Fort Worth and Denver markets. Other markets represented include Houston, San Antonio, Atlanta, Orlando, Phoenix, Salt Lake City, Albuquerque, St. Louis and Kansas City, Missouri.
“This was a landmark deal for us in terms of size and scope, and we coordinated across all Newmark business lines to deliver outstanding results for both buyer and seller,” said Anthony Orso, president of NKF’s Capital Markets Strategies group. Newmark Knight Frank operates under Newmark Group, Inc.
Aragon’s Texas holdings include three Houston properties: Reserve at Windmill Lakes (392 units) at 9988 Windmill Lakes; Villages at Meyerland (711 units) at 8900 Chimney Road; and Walden Pond (556 units) at 12850 Whittington.
Additional Texas properties are: 8500 Harwood in Richland Hills (836 units); Arbrook Park in Arlington (444 units); Reserve at Pebble Creek in Plano (208 units); Rockbrook Creek in Lewisville (342 units); Somerset at Spring Creek in Plano (208 units); The Fairway in Plano (256 units); The Lodge at River Creek in Fort Worth (312 units); The Madison in Dallas (364 units); Vail Quarters in Dallas (332 units); and Carmel at Deerfield in San Antonio (228 units).
“NKF has risen to the forefront of firms executing large multifamily portfolio sales,” said Blake Okland, vice chairman and head of multifamily investment sales. “Our success comes from deep local-market expertise combined with a strong national and international investor network that collaborates to close portfolio transactions of this scale.”
Newmark’s Capital Markets Strategies and Multifamily Capital Markets teams led financing efforts, with Henry Stimler, Bill Weber and Matt Mense guiding the work. Zach Springer brokered the sale leveraging Newmark’s nationwide platform and cooperating with local office teams including Mac Crowther, Brad Goff, Terrance Hunt, Brian Murphy and Scott Ramey.
NKF arranged roughly $1 billion in new financing, while HGI assumed about $400 million of existing debt. The new financing was split into two pools: a fixed-rate loan placed with Freddie Mac originated by NKF, and a short-term floating-rate loan arranged through Bank of America.
HGI intends to invest approximately $90 million in capital improvements across the portfolio, including about $51.5 million dedicated to in-unit renovations.
Harbor Group Management Company, HGI’s internal property management arm, will assume day-to-day management of the properties immediately.
Jan. 27, 2020 Realty News Report Copyright 2020
BOOK SIGNING THURS. JAN 30 – 5 to 7 PM @ River Oaks Book Store, 3270 Westheimer
A BOOK for THE NEW YEAR – by Ralph Bivins, Editor of Realty News Report
Houston 2020: America’s Boom Town – An Extreme Close Up
Available on Amazon
