Price revealed: Harbor pays $75M for rental complex near West Palm

Resia sold the recently completed Pine Ridge apartment complex in central Palm Beach County for $75 million, according to disclosures filed by the seller’s parent company. 

Harbor Group International bought the 288-unit complex at 6200 Wallis Road in an unincorporated area near West Palm Beach. The deal, which closed in late June, was completed through a purchase of the interest in the property’s ownership entity, meaning no deed was recorded showing the price. The buyer also declined to disclose the price. 

But Brazilian publicly traded real estate company MRV, which is Resia’s parent, revealed the price in its second quarter earnings, financial affairs website MarketWatch reported. MRV received a $17.1 million gross profit from the sale. The company also has an agreement to potentially receive an additional $2 million from the deal if the property reaches 94 percent occupancy in a year. This would put the sale price at $77 million. 

Led by Ernesto Lopes, Miami-based Resia is a multifamily developer that sells its projects soon after completion. 

The Pine Ridge deal breaks down to roughly $260,400 per apartment. 

Norfolk, Virginia-based Harbor assumed an existing $37.2 million floating-rate debt on the property from Truist Bank, according to records. Harbor bought an interest-rate cap that limited the loan’s rate to 5 percent through the lease-up period over the next year and a half to two years. At that time, the firm plans to refinance with fixed-rate debt, Harbor’s Yisroel Berg told The Real Deal. Pine Ridge was 25 percent occupied at the time of the purchase. 

The deal marks Harbor’s second acquisition of a South Florida multifamily complex this year. That makes the firm one of the few still purchasing, despite expensive acquisition financing that has priced out many buyers in the market. 

Harbor’s discretionary funds, through which the firm raised capital from institutional investors and family offices, allow the company to keep buying, Newmark’s Hampton Beebe, who brokered the Pine Ridge sale, has told TRD. In addition, now is a good time for buyers who can afford to purchase because the lack of competition for multifamily assets has pushed down prices 25 percent to 30 percent since last year. 

Also in June, Harbor paid $105.5 million for the 280-unit Locklyn West Palm at 3590 Village Boulevard in West Palm Beach. 

Last year, Harbor bought another complex from Resia, the 420-unit Oak Enclave at 2301 Northwest 167th Street in Miami Gardens, for $113 million. Harbor assumed both an existing $67.6 million floating-rate loan and an interest rate cap that limits the rate to 3 percent, Berg said. The property was 55 percent occupied at the time of sale. 

Led by Jordan Slone, Harbor’s South Florida portfolio spans 16 properties with over 4,000 units combined, according to a company news release. 

The firm has been active in the tri-county region. Last year, Harbor paid $440 million for the pair of ParkLine Miami apartment towers atop the Brightline station in downtown, marking the biggest multifamily deal that year.