Virginia Beach M-F Assets Command $73M for Harbor Group International

By Adrian Maties, Associate Editor

Harbor Group International, L.L.C. has sold two apartment communities in Virginia Beach this summer. The properties total 730 units and commanded a combined $72.5 million.

Affiliates of Norfolk-based HGI sold the Chase Arbor apartment community in June to Los Angeles-based JRK Property Holdings, a subsidiary of JRK Investors. ARA’s Drew White and Mike Marshall, and Richmond-based broker Wink Ewing, represented the seller.

Virginia Business reported that the property traded for $44 million. HGI paid $35.35 million for Chase Arbor in 2011, when the Norfolk-based company acquired it as part of a nine-property, $166 million deal.

Constructed in 1983, the 430-unit Chase Harbor community is located at the intersection of South Independence Blvd. and South Plaza near Virginia Beach Town Center. Amenities include a swimming pool, tennis courts, clubhouse with a tanning bed, fitness center, dog park, and a volleyball court. The property was 94% occupied at the time of the sale.

In July, HGI announced the sale of the 300-unit Pembroke Lake apartment community to the Breeden Co, for $28.5 million. Pembroke Lake was acquired by HGI last year for $24.6 million and was part of the portfolio that included Chase Arbor.

“HGI was uniquely positioned to acquire the property as part of a large portfolio transaction and make the necessary upgrades to capitalize on its potential in a strong market,” said T. Richard Litton, Jr., the company’s president. “We are pleased with the property’s performance and the value it provided for our investors.”

Located near the intersection of Independence Blvd. and Pembroke Blvd./N. Witchduck Road, Pembroke Lake is close to the area’s major retail and employment centers and Virginia Beach’s downtown. At the time of the sale, the property was 96% occupied.

Photo: Google Maps.