Firm secures $585 million from Canadian investor
Harbor Group International (HGI), a real estate investment and management firm, has announced that its multifamily credit fund has reached a new milestone of $1.6 billion in capital commitments.
The firm reported Wednesday that it secured roughly $1.6 billion in capital through the fund, including a US$585 million commitment from CPPIB Credit Investments – a wholly-owned subsidiary of the Canada Pension Plan Investment Board (CPP Investments). The $585 million commitment marked CPP’s third and largest investment with HGI since 2019.
In 2020, CPP served as the lead investor in HGI’s multifamily whole loan platform, committing $110 million, and, in 2019, CPP put in $180 million to HGI’s Freddie Mac supplemental loan program.
According to Harbor Group, the fund invests in US multifamily credit opportunities, including senior mortgage loans, Freddie Mac K-series bonds, preferred equity and mezzanine debt investments, and investments in securitized multifamily mortgage products. More than 80% of HGI’s portfolio is composed of multifamily-related investments.
“We are thrilled to continue our relationship with CPP Investments through this partnership as our lead investor for the multifamily credit fund,” said HGI president Richard Litton. “The fund is uniquely positioned to build on HGI’s track record both as an investor in multifamily credit strategies and as a multifamily operator with a large national portfolio. We also expect to benefit from the current rate environment as we seek to achieve positive returns for our investors.”
“We continue to view multifamily credit investments as resilient assets that are well positioned to drive strong returns for the CPP Fund over the long term,” said Geoffrey Souter, managing director and head of real assets credit at CPP Investments. “HGI is a market leader in this space, and we are pleased to extend our relationship with them through this new investment.”
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