Key Takeaways
- • Harbor Group International, The Garrett Cos., and Telis Group completed a $351 million refinancing of senior construction debt across an eight-property multifamily portfolio comprising 1,573 units, with ACRE as the loan originator.
- • The refinanced properties span five markets with geographic concentration in Colorado (five assets across Denver and Colorado Springs MSAs) plus single assets in Phoenix, Indianapolis, and Minneapolis, all developed between 2024 and 2026.
- • The transaction represents Phase 2 of a broader capital structure optimization, following an 11-asset portfolio recapitalization completed in January 2025 by the same partnership.
- • The refinancing demonstrates HGI's execution capability in complex, geographically diverse financing structures across markets with distinct operating and demand profiles, according to Yisroel Berg, CIO of multifamily at HGI.
Summary
Affiliates of Harbor Group International have secured a $351 million refinancing facility for eight multifamily properties totaling 1,573 units in partnership with The Garrett Cos. and Telis Group. ACRE originated the loan facility, which refinanced senior construction debt across the portfolio. The transaction highlights HGI's strategic approach to capital deployment in the multifamily sector and its ability to navigate complex financing environments across multiple metropolitan markets.
The eight properties included in this refinancing represent a subset of a broader 11-asset multifamily portfolio that the three partners recapitalized in January 2025. The refined focus on eight assets suggests a phased refinancing strategy, with the partnership selectively advancing debt restructuring as market conditions and asset maturation timelines align. All properties in the current refinanced portfolio were developed between 2024 and 2026, positioning them in the early operational phase of their asset lifecycle.
Geographic diversification characterizes the portfolio's market exposure. Five of the eight properties are located across the Denver and Colorado Springs metropolitan statistical areas in Colorado, reflecting significant capital concentration in the Front Range region. The remaining three assets are distributed across Phoenix, Indianapolis, and Minneapolis—markets that present distinct demand drivers, regulatory environments, and operational characteristics. This geographic spread reduces concentration risk while providing exposure to varied demographic and economic fundamentals across Sun Belt and Midwest corridors.
According to Yisroel Berg, Chief Investment Officer of Multifamily at HGI, the transaction "reflects HGI's ability to execute complex financing solutions across geographically diverse markets with distinct operating and demand characteristics." This positioning underscores the firm's competitive advantage in navigating intricate capital structures and lender relationships during a period of market transitions in multifamily real estate financing. As a major real estate investor managing $21 billion in assets globally, HGI's refinancing execution demonstrates continued institutional confidence in the partnership's operational and financial management of newly developed multifamily assets.
The eight properties included in this refinancing represent a subset of a broader 11-asset multifamily portfolio that the three partners recapitalized in January 2025. The refined focus on eight assets suggests a phased refinancing strategy, with the partnership selectively advancing debt restructuring as market conditions and asset maturation timelines align. All properties in the current refinanced portfolio were developed between 2024 and 2026, positioning them in the early operational phase of their asset lifecycle.
Geographic diversification characterizes the portfolio's market exposure. Five of the eight properties are located across the Denver and Colorado Springs metropolitan statistical areas in Colorado, reflecting significant capital concentration in the Front Range region. The remaining three assets are distributed across Phoenix, Indianapolis, and Minneapolis—markets that present distinct demand drivers, regulatory environments, and operational characteristics. This geographic spread reduces concentration risk while providing exposure to varied demographic and economic fundamentals across Sun Belt and Midwest corridors.
According to Yisroel Berg, Chief Investment Officer of Multifamily at HGI, the transaction "reflects HGI's ability to execute complex financing solutions across geographically diverse markets with distinct operating and demand characteristics." This positioning underscores the firm's competitive advantage in navigating intricate capital structures and lender relationships during a period of market transitions in multifamily real estate financing. As a major real estate investor managing $21 billion in assets globally, HGI's refinancing execution demonstrates continued institutional confidence in the partnership's operational and financial management of newly developed multifamily assets.
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