Newmark Knight Frank has announced the sale of Aragon Holdings, LLC’s national portfolio of apartment properties to Harbor Group International, a global real estate investment and management firm, for $1.85 billion, marking the largest multifamily sale since 2016 and the fifth largest ever recorded in the U.S.
The portfolio includes 36 properties (composed of 13,243 units) spanning nine primary and secondary markets across eight U.S. states. The portfolio is most highly concentrated in Dallas/Fort Worth and Denver, while Houston, San Antonio, Atlanta, Orlando, Phoenix, Salt Lake City, Albuquerque, St. Louis and Kansas City (MO) comprised the remaining markets.
“This was a landmark deal for us in terms of size and scope as we were able to work across all Newmark business lines to successfully achieve spectacular results for both the buyer and seller,” stated Anthony Orso, president of NKF’s Capital Markets Strategies group.
NKF arranged approximately $1 billion of combined new financing, while $400 million of existing debt was assumed directly by HGI. The new debt was placed in two separate pools: an NKF-originated fixed-rate loan with Freddie Mac and a short-term floating-rate loan arranged by Bank of America.