Harbor Group International LLC has sold a 160-unit residential project in the town of Hoover, Alabama, for $7.2 million. The company, owned by US and Israeli investors, bought the property four years ago for $4.5 million.
In April 2007, the company sold a 696-unit project in the same town for $65.8 million. The average internal rate of return (IRR) for the two projects was 36.3%.
Harbor Group managing director and Harbor Group Israel VP Jay Zwiebel said that the property was sold because of the success of the company's business plan and the wish to buy properties in other markets. "Three years ago, we refinanced the loan on the property, and now, after it has reached full value, and following the sale of the neighboring property last year, we decided to sell this property, too," he said.
Harbor Group chairman and CEO Jordan Slone added, "Despite the present credit crisis, the residential rental market is still very liquid because of available financing sources, mainly from FNMA (Fannei Mae) and FHLMC (Freddie Mac), which have expanded their activity recently."
Headquartered in Norfolk, Virginia, Harbor Group has offices in New York, Chicago, Toronto, London, and Ramat Gan. Electra Real Estate Ltd. (TASE:ELCRE) acquired 25% of the company in August 2007. Last month, the company bought three residential projects near the Johnson Space Center in Houston for $41.2 million from a baseball player.
Published by Globes [online], Israel business news - www.globes-online.com - on May 20, 2008
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