NORFOLK, Va., June 26, 2024 -- Harbor Group International, LLC ("HGI"), a privately owned international real estate investment and management firm, today announced its credit platform has reached $5 billion in assets under management. The firm manages a range of real estate debt investments, including whole loans, Freddie Mac structured debt products, preferred equity investments and mezzanine loans.
HGI has sourced and managed real estate debt investments for nearly two decades. Early strategies included the issuance of preferred equity prior to the Great Financial Crisis ("GFC"), as well as a successful CMBS bond trading strategy during the GFC. HGI became a Freddie Mac K-Series B-piece buyer in 2015.
Since launching the credit platform, HGI has executed in excess of 280 multifamily credit investments and realized more than 100, achieving a realized average Net IRR of 12%+. In addition to its direct lending strategy, the firm has expanded its debt offerings for investors as a CRE-CLO issuer, issuing three collateralized loan obligations ("CLOs") to date. Additionally, HGI is one of the few select investment managers to partner with Freddie Mac in the issuance of a Freddie Q deal.
"With our consistent track record in the multifamily sector across market cycles, our credit platform is a strong complement to our owned portfolio," said Matt Jones, Chief Investment Officer – Credit at HGI. "The upcoming wave of loan maturities and the higher-for-longer interest rate environment present favorable market conditions to provide meaningful capital to borrowers and maximize returns. We look forward to identifying valuable opportunities on behalf of our investors and continuing to grow our credit platform."
HGI established a formal whole loan bridging lending platform in 2020. In September 2021, the firm launched its first dedicated multi-strategy multifamily credit fund, investing in senior mortgage loans, Freddie Mac K-series bonds, preferred equity, mezzanine loans and securitized multifamily mortgage products. The fund secured over $1.6 billion in capital commitments, with support from a range of institutional investors including pension funds, family offices, insurance companies and wealth management firms. The fund ranked as one of the largest fund closes in H1 2023 by PERE.
HGI's multifamily expertise continues to be recognized across the industry. The firm is the most active Freddie Mac B-piece buyer globally and is consistently ranked on PERE's Real Estate Debt 50 list.
About Harbor Group International
Harbor Group International, LLC, and its affiliates control an investment portfolio of approximately $19 billion, including 56,000 apartment units in the United States and 5.0 million square feet of commercial space throughout the United States and the United Kingdom. In addition to its corporate headquarters in Norfolk, Virginia, HGI maintains offices in New York, Baltimore, Los Angeles, and Tel Aviv. Follow HGI on LinkedIn.