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Monday, Jun 17, 2024

Harbor Group Spends $180M in Long Beach

Affiliates of real estate investment and management firm Harbor Group International purchased the Long Beach Coastal Collection, a portfolio of multifamily communities in Long Beach, for $180 million. The sale was announced in late July.
The communities consist of three mid-rise properties with 348 apartments in total. Geoff Boler of Eastdil Secured facilitated the transaction.

The assets include the Linden Apartments, 434 E. 4th St; the Alamitos Apartments, 101 Alamitos Ave.; and the Pacific Apartments, 230 W. 3rd St.
Built in 2019 and 2020, the Long Beach Coastal Collection includes a mix of studio, one- and two-bedroom units located within a three-minute drive of each other.

The properties feature amenities such as a rooftop deck with panoramic views, 24-hour resort-quality fitness centers, resident lounges, a heated pool and spa, co-working space and gaming and entertainment rooms.
Located in the center of Long Beach, the apartments are walking distance to the beach and downtown Long Beach’s dining, retail and employment offerings.

The portfolio is anchored by the Port of Los Angeles and the Port of Long Beach, the busiest ports in the country, which support more than 300,000 jobs in the Long Beach area.
The communities are not far from several of the area’s major highways and are equidistant to the nearby employment centers of Los Angeles and Orange County.

“The Long Beach Coastal Collection is a strong addition to HGI’s West Coast portfolio given its central location in an established market that is experiencing renter demand for high-quality apartment housing,” said Greg Heller, managing director of HGI. “We see significant opportunity for operational upside with this transaction, anticipating high occupancies and steady rent growth across the communities.”

Harbor Group has been very active as of late. Earlier this year, a joint venture led by the firm bought a complex in downtown Miami for more than $400 million.
Last month, HGI spent $185 million for a property in Brickell, Florida.

Two weeks ago, Harbor sold The Mark Parsippany, a 212-unit luxury community in Parsippany, New Jersey, for $82.5 million.
Long Beach has become an increasingly desirable area for multifamily investors with a number of notable sales in recent years as well as a few large-scale developments in the works.

In the first quarter, rents in the area averaged 2,404.25 a unit, up from 2,170.83 a unit just one year prior, according to CBRE Group Inc. data.

Hannah Welk
Hannah Welk
Hannah (Madans) Welk is the interim editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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