MIAMI, March 23, 2021 /PRNewswire/ -- Harbor Group International, LLC ("HGI"), a privately-owned international real estate investment and management firm, today announced the $27.5 million financing of a hotel-to-multifamily conversion project in the Coconut Grove neighborhood of Miami. The loan was provided to AB Asset Management ("AB AM") to acquire and rebrand the property as a Class A multifamily community. The project is expected to be completed in September 2022.
In recent years, Coconut Grove has experienced a surge of new commercial, office and retail developments poised to re-energize the neighborhood's eclectic mix of shops, cafes, and restaurants. The property is well-located at the entry point of the Grove's business district, which features 360,000 square feet of Class A office space. Additionally, the property sits directly on the Miami Trolley line, providing convenient access to employment and entertainment centers such as Downtown Miami, Coral Gables, the Performing Arts District and Midtown Miami.
The Grove only has a total multifamily rental inventory of just 1,870 apartments, and no new projects are currently under construction. There are no Class A multifamily developments in the business district, which has the potential for converted apartments to command strong rents in one of Miami's strongest residential markets.
"As Miami increasingly attracts new residents and businesses, Harbor Group International is happy for this opportunity to finance a high-quality housing option in a strong and in-demand market," said Richard Litton, HGI. "We are excited to play a part in bringing new life to a historic property within a premier and growing community."
This deal falls within HGI's multifamily whole loan platform, which began originating and closing loans in 2020.
"We are pleased to have this opportunity to capitalize on the rapid growth of the Coconut Grove market," said Getzy Fellig of AB Asset Management.
"Thanks to the availability of financing from HGI," added AB Asset Management's Sam Zalmanov. "We will be able to deliver a desirable Class A multifamily community that adds to this uniquely successful market."
About AB Asset Management
AB Asset Management is a vertically integrated real estate company based in Miami Beach. Their focus is on value added and opportunistic investments across various asset classes and geographies. They manage equity funds for select family offices and strategic partners. Through their disciplined approach, investing experience and extensive network enable them to execute strategies that offer long term value to their investors. For additional information, please visit liveatab.com.
About Harbor Group International
Harbor Group International, LLC, including its affiliates, is a private real estate and real estate-related investment and management firm which controls a portfolio of worldwide assets valued at $12.6 billion. HGI is headquartered in Norfolk, Virginia, with offices in New York, Baltimore, Los Angeles, and Tel Aviv. The company's real estate holdings include 4.1 million square feet of commercial properties and 46,000 apartment units. For additional information, please visit www.harborgroupint.com.
SOURCE Harbor Group International, LLC