HGI Pays $113M for New Multifamily Property in Miami Gardens
By Julia Echikson January 3, 2023 5:48 pm
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Harbor Group International (HGI) is back on the prowl in South Florida, scooping up yet another multifamily asset after a string of purchases last year.
The Norfolk, Va.-based real estate investor paid $113 million for Oak Enclave Miami, a 420-unit property in Miami Gardens, Fla.
In June, the seller, Resia, formerly known as AHS Residential, completed the development at 2301 Northwest 167th Street, which faces the Palmetto Expressway. The community features five residential buildings, as well as an amenity center, across 14 acres.
“As the Miami MSA continues to experience strong in-migration, both outside of and within Florida, we see opportunity in submarkets such as Miami Gardens as residents seek well-located housing at an affordable price point,” Richard Litton, president of HGI, said in a statement.
Resia, an affiliate of Brazilian homebuilding company MRV, had bought the site for $9.5 million in 2019 and secured a $52.5 million construction loan from Bank of America in 2021, per property records. The property is now 75 percent leased and 69.5 percent occupied.
The sale netted Resia $47.6 million in net proceeds and $26.7 million in gross profit, according to MRV, which, as a publicly traded company, also disclosed the sale price. A representative for HGI declined to comment about the price.
HGI assumed Resia’s $64.9 million loan that Wells Fargo issued last year. The trade — which Cushman & Wakefield’s Robert Given and Troy Ballard brokered — equates to $269,000 per apartment.
The acquisition brings HGI’s Miami-Dade County portfolio to eight properties, comprising nearly 2,000 units. Last year, it paid over $400 million for Parkline Miami, a 816-unit complex in Downtown Miami, in one of South Florida’s largest deals of 2022. In another 2022 notable deal, it bought a 372-unit property in Brickell for $185 million.
Julia Echikson can be reached at jechikson@commercialobserver.com.
