HARBOR GROUP INTERNATIONAL RETURNS TO VALLEY WITH PURCHASE OF ARCADIA APARTMENTS
Publish Date: 06-07-2019
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.
Business Real Estate Weekly, Inc. is the publisher of Business Real Estate Weekly (BREW), a tip sheet newsletter that covers business and real estate activity in Arizona. Founded in 1995, BREW is a weekly publication focusing on new residential and commercial developments, the sale of income-producing properties and businesses relocating or expanding in Arizona. For those looking to have cutting edge information at their fingertips, BREW is the publication business professionals use to get the latest in commercial and residential real estate news in Arizona. Known for it's accurate, timely and independently researched information, BREW has been called "The Bible" for its detailed, first hand reporting on business and real estate deals in Arizona. With more than 23 years of stories and news items in our archives, Business Real Estate Weekly has the longest period of chronicled history of all business and real estate news sources in the Valley. With the newly-added multiple search capabilities in our archives, BREW is a must have for anyone researching real estate in Arizona or simply following the market.