Harbor Group buys $1.8B multifamily portfolio

9,677-unit package spans five major metro areas

Jordan Slone, Philadelphia and Washington, D.C.
Jordan Slone, Philadelphia and Washington, D.C.

Jordan Slone’s Harbor Group International acquired a 9,677-unit rental portfolio from Lone Star Funds for $1.8 billion, The Real Dealhas learned.

The purchase was financed with acquisition loans from New York Community Bank ($512 million) and Berkadia Commercial Mortgage ($930 million). The latter loan was provided with Freddie Mac backing.

The portfolio includes rental properties in the Washington. D.C., Philadelphia, Baltimore, Chicago and Boston areas.

When reached for comment, Harbor Group’s CEO Jordan Slone said the largest groupings of units, which he said consist entirely of middle-income housing, are concentrated around the Washington, D.C., and Philadelphia metros.

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“The residential portion of the company will now be a little over 30,000 units,” Slone said. “We’re looking to hold on to these for a while. These are great cash flowing properties.”

Meridian Capital Group represented Harbor Group in the deal and Eastdil Secured represented private equity firm Lone Star, the seller.

Harbor Group, which owns nearly 5 million square feet of commercial property, is headquartered in Norfolk, Virginia, but has significant holdings in New York City. Last year, along with Isaac Kasirer, the firm acquired a 38-building multifamily portfolio in the Bronx for which it paid $140 million. In 2015, it bought a retail condo at 445 Fifth Avenue for $68 million.

Editor’s note: An earlier version of this story misstated the amount of the Berkadia loan.