Bank of America has provided an $86.8 million loan to Harbor Group International for the acquisition of Orchard Pond, a 63-building apartment complex in Gaithersburg, Maryland.
Harbor Group paid LaSalle Investment $108.5 million for the property, putting the loan-to-value at 80 percent.
The company, which controls more than $3.8 billion in real estate investment properties, plans to pump about $10 million of improvements into Orchard Pond.
Built in 1973, the garden-style apartment complex includes 747 apartment units set across 11 acres of land. LaSalle and its joint venture partners had purchased the property in May of 2008 with $78.8m in acquisition financing from GE Capital.
Last month Harbor Group sold three multifamily communities — Town Center in Houston, Texas; Oaks of Eagle Creek, Indianapolis, Indiana; and Forestlake in Daytona Beach, Florida — for $112.3 million after having paid $80.2 million for them prior to the recession, falling in line with its value-add approach.
Thor Equities is also said to be selling the retail condo at 445 Fifth Avenue in Midtown Manhattan to Harbor Group for $68 million.
And, late last year the company received $151 million in financing from Freddie Mac for the acquisition of The England Group Portfolio, a 2,368-unit multifamily portfolio in Texas.