PHOENIX, AZ – Affiliates of Harbor Group International, a privately owned international real estate investment and management firm, announced the acquisition of the Colter Park Apartments, a 384-unit multifamily property located in Phoenix, Ariz., for $80.75 million. Steven Vegh of Westwood Realty Associates brokered the off market transaction. Northmarq arranged a Freddie Mac senior loan on behalf of HGI led by Bryan Mummaw.
Located in the Uptown Phoenix submarket, the property is supported by strong market fundamentals, with the area featuring some of the city’s most popular bars, restaurants and retail locations. The property sits within Camelback Corridor, a prominent shopping, hospitality and employment district.
“The acquisition of the Colter Park Apartments further represents HGI’s ability to identify unique value-add opportunities within fundamentally strong markets and continue to grow the firm’s active investment portfolio within the Sunbelt region,” said Greg Heller, Managing Director of Acquisitions at HGI. “This transaction provides significant opportunity for operational upside as we expect to see high occupancy rates and steady rent growth over the next five years in the greater Phoenix region.”
The apartment community is centrally located and easily connects residents to major employment and lifestyle nodes within the Phoenix region. The property is within a 10-minute drive of Midtown and provides direct access to the Valley Light Rail system, which will present residents additional modes of access to employment and entertainment centers including Midtown, Downtown and the Phoenix Sky Harbor International Airport. The submarket is also proximate to a range of employers such as Banner Health, the City of Phoenix, Bank of America, U.S. Bank, Uber and WeWork.
HGI plans to invest $5 million to renovate the remaining vintage units within the complex, as well as common area improvements and deferred maintenance, enhancing the community’s curb appeal. As such, the renovations will provide significant value-add and mark to market opportunity for the firm.