Harbor Group International Pays $562M for 11 Multifamily Assets
Shawn Tibbetts AH Realty Trust is selling to portfolio to reduce leverage for his REIT
By Brian Pascus March 16, 2026 1:47 pm
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A large U.S. multifamily portfolio is now on the move after a deal between a private multifamily powerhouse and a publicly traded real estate investment trust (REIT).
Harbor Group International has purchased a portfolio of 11 multifamily assets from AH Realty Trust, according to a release. The deal is expected to close in mid-2026.
AH Realty Trust, the REIT formerly known as Armada Hoffler, announced the sale Monday morning. The firm’s leadership outlined its decision as one built around simplifying its commercial real estate platform, reducing existing debt costs, and reallocating capital away from apartments and toward retail and office operations.
Shawn Tibbetts, chairman, president and CEO of AH Realty Trust, said that the deal will “unlock value for [firm] shareholders” and implied that “the intrinsic value” of the firm’s stock has not lately been reflected by public market sentiment.
AH Realty Trust currently trades at $5.67, as of Monday morning, down 25 percent on the year and 56 percent since March 2021.
“This transaction allows us to realize that value, strengthen our balance sheet, and advance our focus toward a simpler real estate platform,” he said.
AH Realty Trust is expected to use proceeds from the sale to reduce existing debt, as the firm aims to hold a leverage target of 5.5x–6.5x net debt to total adjusted earnings, according to Tibbets.
“Executing this sale is a critical component of our plan to strengthen our balance sheet, reduce complexity, and concentrate our resources on the retail and office sectors where we can create the most value,” Tibbetts added.
As for Harbor Group International, the purchase marks yet another massive, multifamily acquisition by HGI President Richard Litton’s firm, which was active in several deals last year.
Last June, Harbor Group paid $625 million to acquire a portfolio of 11 multifamily properties throughout the Southeast U.S., of which 95 percent of the building units were occupied.
The firm also spent $740 million for the August 2025 acquisition of five multifamily communities in the greater Boston area, a portfolio that carried an occupancy rate of 95.7 percent.
“We expect the acquisition of these high- quality multifamily properties to further enhance our growing portfolio,” said Litton in a statement.
Brian Pascus can be reached at bpascus@commercialobserver.com.
