Virginia Real Estate Firm Buys Pair of Phoenix Apartment Complexes for $225 Million Article originally posted on CoStar on September 21, 2022 Harbor Group Scoops Up Nearly 950 Units in Separate Deals for Older Apartment Properties The Colter Park Apartments is one of two Phoenix apartment complexes acquired in the past month by Harbor Group International. (CoStar) Real estate firm Harbor Group International bought its fifth and sixth apartment complexes in greater Phoenix in the latest sign that investor demand is still strong for multifamily properties in the Grand Canyon State. Harbor Group International of Norfolk, Virginia, paid just under $81 million, roughly $210,000 per unit, to buy the Colter Park Apartments at 909 W. Colter St. in midtown Phoenix from Phoenix-based private investment firm 3rd Avenue Investments, according to public sale and loan documents. The deal comes less than a month after Harbor Group made one of the largest apartment purchases by total price in Phoenix this year, paying $143 million, or $257,000 per unit, to buy the 556-unit Capri on Camelback at 5115 N. 40th St. in Phoenix’s Camelback district, according to documents. Harbor Group has made other high-dollar deals this year to buy multifamily properties across the United States, including the $180 million purchase in July of three complexes in Long Beach, California, and the $450 million acquisition in March of the 816-unit ParkLine Miami in Miami. The Colter Park purchase price is more than 50% higher than seller 3rd Avenue Investments paid in early 2020 to acquire the 22-building, two-story property built in the early 1970s from a Canadian investment firm, CoStar data shows. The price paid for Capri on Camelback by Harbor is 75% higher than the $81.3 million that the seller, Nuveen — the investment manager of the Teachers Insurance and Annuity Association of America — paid for the complex in 2018, according to CoStar. The price appreciation reflects investors’ keen appetite this year for Phoenix apartments, which have seen double-digit rent growth and a tight vacancy rate despite record levels of apartments under construction this year, according to CoStar Market Analytics. Investors, including many from outside Arizona, have poured more than $17 billion into multifamily sales in greater Phoenix over the past 12 months, CoStar data shows. “We expect to see high occupancy rates and steady rent growth over the next five years in the greater Phoenix region,” Harbor Group Managing Director of Acquisitions Greg Heller said in a statement announcing the Colter Park acquisition. Harbor plans to spend $5 million to renovate units and improve common areas to boost Colter Park’s curb appeal, according to the statement. Harbor Group and its affiliates have 5 million square feet of commercial space across the United States and the United Kingdom and 61,000 apartments in the U.S. In addition to its corporate headquarters in Norfolk, Harbor has offices in New York, Baltimore, Los Angeles and Tel Aviv, Israel. For the Record Steven Vegh of Westwood Realty Associates brokered the Colter Park transaction representing Harbor Group, and Northmarq arranged a Freddie Mac senior loan for the buyer.