JLL Brokers $190M Baltimore-Based Multi-Family Sale to Harbor Group

Monday, Jones Lang LaSalle announced the completion of the sale of six multi-family properties in Baltimore, with Harbor Group International purchasing the 1,984-unit portfolio for $190.1 million.

July 26, 2011
By Nicholas Ziegler, News Editor

Granite Run in
Windsor Mill, Md.

Warren Buffett once said that the time to be bold in the market is when others are fearful, and if that’s the case, it’s a good time to be as bold as possible. On Monday, JLL announced the completion of the sale of six multi-family properties in Baltimore, with Harbor Group International purchasing the 1,984-unit portfolio for $190.1 million.

According to intenrnal research by JLL, the Baltimore area’s growing federal-government presence and diverse private-sector tenant base should continue to sustain the market, offsetting losses from state and local government in the next 12 months. In the second quarter of 2011, areas outside of those affected by the military’s growth will likely see stable fundamentals. The multi-family units, then, will bring a hefty return for Harbor, as the local economy continued to add jobs, primarily in the professional-services and healthcare industries.

Jones Lang LaSalle Managing Director Al Cissel was optimistic about future returns. “This portfolio offers a range of different product types for potential renters making it appealing on numerous levels,” he said.  “There was a significant amount of interest in the portfolio due to its size, as we continue to see investors looking for large acquisitions that offer increasing cash flow and economies of scale.”

The Chicago-based firm has been active in the industrial and office sectors in this month alone, signing some large deals for properties in places as diverse as Downtown Los Angeles and Cambridge, Mass. But it’s also been moving in multi-family as well, marketing and selling the $460 million, 2,580-unit Magazine Portfolio in metropolitan Washington, D.C., in the largest deal in that sector since 2008, as well as a $286 million, 1,626-unit portfolio of properties in Maryland and Virginia.