Harbor Group International Makes Significant Loan Move
In a move that underscores the strength of the real estate market, Harbor Group International, LLC (HGI) recently announced its provision of a $64 million senior loan to support a joint venture between Greystar Development and Crown Realty Group for a newly constructed multifamily property known as Sunela.
Details of the Loan
This substantial bridge loan is designed to assist with the lease-up phase of Sunela, which consists of 272 units in a one-building layout. Richard Litton, the President of HGI, expressed enthusiasm about supporting Greystar and Crown through this financial arrangement as they work toward stabilization by late 2025.
Understanding the Property
Sunela is uniquely positioned in Desert Ridge, a rapidly developing area noted for its high population growth. The broader Phoenix metropolitan region is expected to see a 9.1% population increase by the year 2026, marking it as a hub for real estate development and investment.
Strategic Location Benefits
With only a handful of multifamily developments in the Desert Ridge area, Sunela aims to meet the growing demand for high-quality rental options. Its proximity to significant employment opportunities, including the massive $2.75 billion expansion of the Mayo Clinic and the Arizona State University medical campus, enhances its appeal.
Amenities and Features of Sunela
Sunela offers a modern living experience with a mix of rental options, including studio, one-bedroom, and two-bedroom units, totaling 230,222 rentable square feet. The community is designed to cater to residents' needs with various amenities, such as a fitness center, a cozy clubhouse café, a refreshing pool deck, co-working spaces, and inviting fire pits.
Harbor Group International's Impact
The provision of this loan marks the 102nd multifamily bridge loan initiated by HGI since launching its lending platform in late 2020. This commitment to multifamily housing aligns with HGI's extensive portfolio, which includes approximately $20 billion in assets across various real estate sectors.
Background on Harbor Group International
HGI is distinguished by its diverse investment portfolio, which encompasses over 57,000 apartment units and millions of square feet of commercial real estate across the United States and the United Kingdom. Their operational headquarters is based in Norfolk, Virginia, with additional offices in major cities such as New York, Baltimore, Los Angeles, and Tel Aviv.
Connections with Greystar and Crown Realty
Greystar, a prominent player in the global real estate market, specializes in property management, investment management, development, and construction services. With a vast portfolio valued at approximately $320 billion, Greystar's influence extends across numerous markets worldwide.
Crown Realty Partners, established in 1994 and based in California, boasts a diversified portfolio that includes over 4.7 million square feet of mixed-use, industrial, office, retail, and residential properties throughout multiple states.
Frequently Asked Questions
What is the significance of the $64 million loan by HGI?
This loan plays a crucial role in supporting the lease-up phase for Sunela, addressing the growing rental demand in a rapidly expanding area.
How many units does Sunela comprise?
Sunela consists of 272 rental units, which include studio, one-bedroom, and two-bedroom options.
What amenities are available at Sunela?
Residents can enjoy a fitness center, clubhouse café, pool deck, co-working spaces, and fire pits, enhancing their living experience.
Where is Sunela located?
Sunela is located in the Desert Ridge area, widely recognized for its swift population growth and proximity to major employment hubs.
What is Harbor Group International's overall investment portfolio?
HGI's investment portfolio is valued at approximately $20 billion, covering 57,000 apartment units and significant commercial space across the US and UK.
