Newmark Refis Southeast Multifamily Portfolio with $201M Freddie Mac Loan

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Harbor Group International (HGI) has secured a $200.6 million debt package to refinance most of a Southeast multifamily portfolio it acquired two years ago, Commercial Observer can first report.

Newmark (NMRK)’s lending arm provided the Freddie Mac (FMCC)-backed fixed-rate loan on seven properties in HGI’s Southern Piedmont Portfolio totalling 1,920 units in North Carolina and Virginia. 

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The deal was led by Newmark’s multifamily capital markets debt and equity team of Henry Stimler, Bill Weber, Matthew Mense, Daniel Sarsfield and Ricky Warner.

HGI purchased the eight-property Southern Piedmont Portfolio for $309 million in early 2021 from a joint venture between McDowell Properties and Angelo Gordon. Newmark supplied a $242 million Freddie Mac-backed debt package consisting of a series of floating-rate loans to help fund the deal. 

“HGI have been great stewards of the Southern Piedmont Portfolio since they acquired the assets,” Weber said in a statement. “Due to their work on the assets, the properties have increased residents’ retention and overall performance, and we worked with Freddie Mac on the refinancing to lock in favorable long-term fixed rates and reduce HGI’s exposure to increasing short-term floating rates.”

Norfolk, Va,-based HGI has spent nearly $3 million in capital improvements since purchasing the properties in 2021. The portfolio includes Harlowe Apartments and The Residences at West Mint in Charlotte;  200 Braehill, Corners at Crystal Lake and Mill Creek Flats in Winston-Salem; Woodlake Reserve in Durham; and The Samuel in Hampton, Va. 

Officials at HGI did not immediately return a request for comment. 

Andrew Coen can be reached at acoen@commercialobserver.com