LOS ANGELES and NEW YORK, Jan. 15,
2020 /PRNewswire/ -- Aragon Holdings, LLC ("Aragon"),
and Harbor Group International, LLC ("HGI"), announced today that
affiliates of HGI have purchased a portfolio of 36 apartment
properties comprising of 13,243 units from Aragon for $1.85 billion. The acquisition is the
5th largest apartment portfolio sale ever, and the
largest since 2016.
The deal is part of Aragon's broader $2
billion sale of its entire apartment portfolio consisting of
15,000 units located in 12 cities and 8 states across the
nation.
Commercial real estate services firm Newmark Knight Frank
(NASDAQ: NMRK) represented the seller in the sale and the buyer for
the debt financing.
"We decided to sell our portfolio because we recognized that, in
the present market conditions, the properties would have the
greatest value in the hands of a 'value-add' operator," said
Larison Clark, Founder, Chairman and
CEO of Los Angeles-based Aragon
Holdings. "Harbor Group targets value-add opportunities, making
this an ideal transaction for both firms."
The portfolio, which had been acquired over the last 10 years,
is primarily in the southern portion of the United States, from Arizona to Florida. The properties average 350 units
each, comprised of two- and three-story buildings located in
suburban areas near employment centers, shopping, highly rated
schools and easy transportation access.
"The purchase of the portfolio demonstrates Harbor Group
International's significant growth and evolution as a leading
industry player as we continue to execute on larger, more complex,
and attractive opportunities for our investors," said Jordan Slone, CEO of HGI. "This transaction
marks a significant step for HGI as we continue to grow our
portfolio in lucrative markets and provide our investors with a
strong, diversified portfolio."
Dan Guy, Aragon's President and
Chief Operating Officer, noted that Aragon Holdings initially
focused on multifamily housing because "we saw the opportunity for
strong investor returns in the wake of the 2008 economic crisis.
Since then we have achieved exceptional cash-on-cash and IRR
returns for our investors," Mr. Guy said. "Our team is now
analyzing commercial real estate opportunities that provide the
best risk-adjusted returns for our investors."
NorthMarq Capital represented the Seller for debt assumptions
and defeasance. Meridian Capital Group was used by the Buyer as an
advisor.
About Harbor Group International
Harbor Group
International, LLC, is a private real estate investment and
management firm which controls a portfolio of worldwide assets
valued at $12.5 billion. Founded in 1985 by Jordan E. Slone, Chairman and CEO, HGI is
headquartered in Norfolk, Virginia with offices
in New York, Baltimore, Los Angeles and Tel
Aviv. The company's real estate holdings include 3.7 million
square feet of commercial properties and, with the acquisition of
the Aragon properties, approximately 50,000 apartment
units.
www.harborgroupint.com.
About Aragon Holdings
Aragon Holdings, based in
Los Angeles, was founded in 2008
by Larison Clark as a private real
estate investment and fund management company. Prior to Aragon, Mr.
Clark founded Diamond Key Homes
(DKH), a Phoenix-based builder and
developer. In 1995 DKH was listed in the INC 500 as one of the
nation's Top 20 fastest-growing companies, and three years later
the firm was acquired by a NASDAQ-listed company. Dan Guy, who worked with Mr. Clark at DKH,
joined Aragon Holdings as a partner and President/COO shortly after
its founding.
Aragon Holdings creates private investment funds with the goal
of providing tax-deferred monthly income to investors by acquiring
commercial real estate properties throughout the US, in cities that
have exhibited, and are projecting, healthy economies with positive
employment growth. www.aragonusa.com.
Press contact for Harbor Group International:
Robert Klemens
(646) 818-9009
rklemens@prosek.com
Press contact for Aragon Holdings:
Alexander Auerbach
(818) 501-4221
auerbach@aapr.com
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SOURCE Harbor Group International, LLC