Dive Brief:
- Affiliates of Harbor Group International have entered into an agreement to acquire an 11-property portfolio, totaling 2,436 units, from REIT AH Realty Trust for $562 million in cash, subject to customary adjustments and closing conditions, according to a press release shared with Multifamily Dive.
- Norfolk, Virginia-based HGI has provided a $15 million nonrefundable deposit, and the transaction is not contingent on financing. The deal is expected to close in mid 2026. The firm, which has an investment portfolio of approximately $21 billion with roughly 65,000 apartments, was the top buyer of apartments in 2025, according to a report that data firm MSCI shared with Multifamily Dive.
- With the sale, Hampton Roads, Virginia-based AHRT, formerly known as Armada Hoffler, will have followed the path of some other smaller apartment REITs by liquidating the majority of its multifamily portfolio. The firm, which has retail and office assets primarily in the Mid-Atlantic and Southeast, will retain Smith’s Landing and plans to separately market The Everly and Solis Gainesville assets.
Dive Insight:
HGI and AHRT are both long-standing names in Hampton Roads real estate with a shared history in the region, according to the release.
“We are proud to announce this milestone transaction with a firm that, like us, has deep roots and a long history in Hampton Roads and a strong presence in this market,” said Shawn Tibbetts, chairman, president and CEO of AH Realty Trust in the release. “HGI is acquiring a strong, stable portfolio that has served our company well.”
In August 2025, HGI purchased a 2,719-unit, five-property New England portfolio from Denver-based AIMCO, another REIT that is winding down. In June, it bought a 3,590-unit, 11-property southern portfolio from a joint venture consisting of David Werner; Lakewood, New Jersey-based real estate investment and asset management company Onyx Partners; and New York City-based investment firm Carlton Associates.
“We are pleased to work with AH Realty Trust, a fellow Hampton Roads institution, on this transaction,” said T. Richard Litton Jr., president of HGI, in the release. “We expect the acquisition of these high-quality multifamily properties to further enhance our growing portfolio."
The portfolio sale will help AH Realty Trust simplify its balance sheet by divesting multifamily assets and non-core businesses, reduce leverage, focus its growth strategy on targeted retail opportunities and advance its brand as AH Realty Trust while trading as AHRT on the New York Stock Exchange, per the release.
AHRT is also in advanced negotiations to sell two additional real estate financing investments for aggregate proceeds of approximately $63 million.
While AHRT will remain a public company focused on different CRE sectors, other REITs have sold the bulk of their apartment portfolios over the past year. Last month, Veris Residential agreed to be acquired by an investor consortium led by Affinius Capital in partnership with Vista Hill Partners in a $3.4 billion all-cash transaction.
After initiating a “formal evaluation of strategic alternatives” in early 2025, Elme Communities took the first step to liquidate the company by selling a 19-asset portfolio to Atlanta-based investor, developer and manager Cortland Partners for $1.6 billion in cash in August.
Other REITs are weighing options as they move forward. In a November 2025 press release, Centerspace confirmed that its board of trustees initiated a review of the REIT’s strategic alternatives. The Minneapolis-based REIT owns more than 12,000 units.
On the REIT’s fourth-quarter 2025 earnings call last month, President and CEO Anne Olson said that there was no assurance the ongoing review would result in a transaction or strategic change.
“This process was initiated from a position of strength, having transformed Centerspace into a pure-play multifamily REIT while improving profitability, operating scale and our balance sheet,” she said.
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