Late last year, Harbor Group International’s Chief Investment Officer of Multifamily Yisroel Berg signaled that the Norfolk, Virginia-based real estate investment and management firm saw an opportunity to acquire newly built apartments in 2025.
“When you hear about historic development, those units ultimately need a capital event as well, either a refinanced construction loan or an outright sale,” Berg said. “So those units, needing a home on the capital side, can anticipate hitting the market and driving volume as well.”
The firm took advantage of that opportunity on Tuesday when affiliates of HGI announced the acquisition of Livano Canyon Falls, a newly constructed 300-unit apartment property in Northlake, Texas. It is part of the larger Canyon Falls master-planned community, which covers 1,199 acres across Northlake, Argyle and Flower Mound.
"Leveraging our extensive management expertise in Texas, we are confident in our ability to drive a successful lease-up and fully capitalize on the potential for revenue growth as the property reaches stabilization,” Berg said in a news release announcing the deal.
The property is located in a Northwest Dallas submarket that has seen a 513% increase in population since 2010. However, only one apartment project is currently under construction there, according to HGI. Livano Canyon Falls provides residents close proximity to the area's major employers, including Deloitte, Charles Schwab, Fidelity, Amazon and Facebook.
The property offers a mix of one-bedroom, two-bedroom and three-bedroom floor plans, with an average floor plan of 1,015 square feet. Unit interiors feature stainless steel appliances, private balconies or patios and private backyards in select apartments. Its amenities include a designer clubhouse, an entertainment kitchen, private offices, a business center with conference rooms, a resort-style pool with a sun deck and electric vehicle charging stations.
Although Livano Canyon Falls is a newly built asset, Berg left open the possibility that attractive value-add deals could also come to market.
“There's a path where there's a ton of brand new units delivering,” Berg said. “There's a path where there’s distress. There are a lot of different ways where volume can pick up dramatically.”
When acquisition opportunities arise, HGI wants to be a player. “We are ready and eager to be active where the opportunities arise,” Berg said.
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