HARBOR GROUP INTERNATIONAL RETURNS TO VALLEY WITH PURCHASE OF ARCADIA APARTMENTS

Photo Credit: Cushman & Wakefield

PHOENIX – In its second investment in the Valley, two tenant-in-common entities led by Harbor Group International LLC in Norfolk, Va. (Jordan Slone, chairman) paid $40.35 million ($156,395 per unit) to purchase the 258-unit Arcadia 4127 apartments at 4127 E. Indian School Road in Phoenix. Arcadia 4127 Apts LLC, a company formed by Baron Properties LLC in Denver, Co. (J. Jeffrey Riggs, Scott Fisher, principals), was the seller. Steve Nicoluzakis and Dave Fogler of Cushman & Wakefield in Phoenix brokered the sale. The tenant-in-common buyers are: Arcadia Gardens L.P., as to an undivided 89.96370968 percent interest, and Beach Arcadia LLC, as to an undivided 10.03629032 percent interest. Maricopa County records show the buyers acquired the asset with a $30.4 million Freddie Mac loan issued by Berkadia Commercial Mortgage LLC in Ambler, Pa. In April 2016, BREW reported Baron Properties paying $23.45 million ($90,541 per unit) to buy Arcadia 4127 (then called Arcadia Del Sol apartments). The 7.155-acre complex was built in phases in 1970, 1971 and 1986. At year-end 2018, BREW reported a group of TIC entities led by the privately-held Harbor Group International entering the Valley market by paying $63.5 million ($193,598 per unit) to acquire the 328-unit Avana McCormick Ranch apartments located at the southwest corner of Hayden Road and Via de Ventura Drive in Scottsdale. That investment was the first in the Phoenix market for Harbor Group International, which has a worldwide portfolio of 190 assets valued at $9.1 billion. In addition to 31,300 apartment units, the company has 3.6 million sq. ft. of office and retail buildings that it manages from its headquarters in Norfolk, as well as from offices in New York City, N.Y., Baltimore, Md., Los Angeles, Calif. and Tel Aviv, Israel. Baron Properties, also a privately-owned firm, has been an active buyer, developer and seller of multi-family projects in the Phoenix market. In a purchase reported in this week’s issue, Baron Properties paid $67.85 million ($215,397 per unit) to acquire a 315-unit apartment community in Gilbert and the company sold a 68-unit complex in Uptown Phoenix. Find out more from Richard Litton, Jr., pres. of Harbor Global International, by calling (757) 640-8400. Reach the principals of Baron Properties at (303) 290-9007. Talk to the Cushman & Wakefield agents at (602) 954-9000.