Harbor Group International, Garrett Companies, and Telis Group Unite for Major Multifamily Recapitalization Venture

Major Joint Venture in Multifamily Housing

Recently, Harbor Group International, LLC (HGI), a renowned real estate investment firm, announced an exciting collaboration with The Garrett Companies and Telis Group. This joint venture aims to recapitalize an extensive multifamily development portfolio valued at a staggering $630.5 million. The portfolio encompasses 2,192 units across several locations in the United States, highlighting the partners' commitment to enhancing residential offerings in growing markets.

Portfolio Insights

The impressive multifamily portfolio includes properties in four different states. Specifically, eight assets are located in Colorado, while individual properties can be found in Minnesota, Indiana, and Arizona. Development of these properties initiated between 2021 and 2023, and they are now approximately 75% complete. This expedited timeline sets the stage for a quicker delivery and stabilization process when compared to standard development projects.

As articulated by Yisroel Berg, Chief Investment Officer for Multifamily at HGI, the recapitalization process was intricate, requiring extensive negotiations and strategic planning. Berg notes that the successful execution of this venture demonstrates HGI's ability to navigate complex financial structures effectively, ensuring long-term growth and stability for investors.

Strategic Partnership

This venture stands as a testament to the strengths of HGI's partners. Eric Garrett, CEO of The Garrett Companies, emphasized that this collaboration provides an exciting opportunity to utilize their extensive experience in multifamily development to meet the demands of markets across the nation. With a keen understanding of local trends and fundamentals, the team is well-positioned to deliver sustainable, high-quality projects.

Telis Group also contributes its expertise within these markets, focusing on capital solutions for multifamily developments, especially in Sun Belt and Mountain West regions. Co-founders RD Khoury and Keller Reese are committed to ensuring the group's rapid expansion while addressing the national housing shortage—a challenge seen across many metropolitan areas.

Facilitating the Transaction

Facilitating this intricate transaction were Mo Beler and Aaron Appel from Walker and Dunlop's Structured Finance Group, who played a critical role in coordinating with multiple lenders. Their efforts shed light on the substantial institutional interest in quality multifamily assets, even amid varying capital conditions. Their swift execution of this joint venture further highlights the strong demand for well-located properties in rapidly growing markets.

Impact and Future Directions

For HGI, this investment marks its first multifamily undertaking of 2025, following a substantial commitment of approximately $909 million across 25 communities in the previous year. With an impressive portfolio estimated at around $20 billion, including thousands of apartment units and commercial spaces across the United States and the UK, HGI remains a formidable player in the real estate sector.

As the joint venture progresses, all companies involved are well-prepared to adapt to changing market conditions and fulfill the considerable demand for sustainable housing solutions. Through innovative partnerships and strategic investment, they aim to lead the multifamily housing sector into the future, ensuring quality living experiences for thousands of residents across the nation.

This venture reflects a broader trend of collaboration among industry leaders striving to address America’s housing challenges, leveraging their distinctive strengths to achieve shared goals in multifamily development.