HGI, Azure Partners Acquire 480-Unit Apartment Community in Santa Clarita for $230.25MM

Santa Clarita, Harbor Group International, Azure Partners, Jefferson Vista Canyon, JPI, Los Angeles

(EDITOR’S NOTE: According to sources with knowledge of the transaction, the property was sold for $230.25 million, or approximately $479,687 per unit.)

Santa Clarita, Calif. – Harbor Group International, LLC (“HGI”) and Azure Partners, LLC (“Azure”), today announce their joint venture for the acquisition of Jefferson Vista Canyon, a 480-unit, Class A apartment community in Santa Clarita, Calif. HGI and Azure acquired the property from JPI. JLL brokered the transaction and arranged a $173 million floating rate loan on behalf of HGI and Azure. 

The Jefferson Vista Canyon Apartments are part of a 185-acre, mixed-use master-planned development, designed to offer residents convenient and walkable access to employment, recreation and entertainment options. At completion, the development will feature 650,000 square feet of office space and 165,000 square feet of retail, and will include an 11-acre park and direct access to 10-miles of hiking and walking trails. The City of Santa Clarita will construct a bridge across the Santa Clara River connecting the development with Soledad Canyon Road, providing an essential access point to complement the expected increase in resident and visitor density to the micro-location.

The community is centrally located and easily connects residents to major employment and lifestyle nodes within the Santa Clarita Valley, the neighboring San Fernando Valley and throughout Greater Los Angeles via Route 14 and I-5. The property offers an embedded Metrolink commuter rail and bus transfer station, which will provide residents additional modes of access to major employment and entertainment centers in Greater Los Angeles. The Santa Clarita region is proximate to a range of employers within aerospace and defense, medical devices and biotech, advanced manufacturing, digital media and entertainment and information technology.

“The Jefferson Vista Canyon community provides the accessibility, convenience and connectivity today’s residents are seeking,” said Richard Litton, President, HGI. “This acquisition highlights HGI’s investment strategy of acquiring properties in well-located, dynamic markets with strong employment fundamentals. We look forward to expanding our footprint in Southern California.”

Bryant Ferber, Azure’s Managing Director and Head of Acquisitions added, “We are excited to announce our first acquisition in California, and expect this transaction to serve as a springboard to more opportunities in the western United States as we seek to expand our presence in the region. Jefferson Vista Canyon aligns perfectly with our core investment strategy to acquire best-in-class assets in submarkets with strong growth trajectories.”

The JLL Capital Markets team representing the seller was led by Managing Director Peter Yorck and Director Nick Lavin. The JLL Capital Markets Debt Advisory team representing the borrowers was led by Managing Directors Brandon Smith, Annie Rice and Jamie Leachman.

“This luxury asset had a tremendous lease up over the past twelve months and will soon reach stabilization, demonstrating strong renter demand for this product and location,” said Yorck. “The sale of Jefferson Vista Canyon indicates continued robust investor interest in more suburban pockets of Los Angeles County, such as Santa Clarita.”

Built in two phases from 2020 to 2021, Jefferson Vista Canyon features contemporary finishes and desirable amenities unique to other communities in the area, including resort-style pools and a rooftop deck. Interior units include a mix of studio, one-, two- and three-bedroom layouts.

Jefferson Vista Canyon adds to HGI’s Southern California multifamily portfolio and marks the firm’s seventh multifamily investment in the region.

About Harbor Group International

Harbor Group International, LLC, and its affiliates control an investment portfolio of $16.3 billion including 4.4 million square feet of commercial space throughout the United States and the United Kingdom and 59,000 apartment units in the United States. In addition to its corporate headquarters in Norfolk, Virginia, HGI maintains offices in New York, Baltimore, Los Angeles, and Tel Aviv.

About Azure Partners

Azure Partners LLC (“Azure”) is a real estate investment firm focused on the acquisition and management of real estate assets within high-growth markets in the United States. Azure’s primary investment objective is to produce superior risk adjusted returns for its investors while giving investors current cash return on equity and minimizing downside risk.

Azure professionals have been directly involved in more than $15 billion in commercial and residential real estate transactions throughout North America and Western Europe.

Since its founding in 2010, Azure has purchased approximately $2.5 billion of assets including more than 11,000 multifamily units and 700,000 square feet of retail.

About JPI

JPI is a national developer, builder, and investment manager of Class A multifamily assets across the U.S., with over 5,000 apartment homes under construction. JPI is headquartered in Irving, Texas, and has an office in California. With a 30-year history of successful developments throughout major U.S. markets and an unparalleled depth of industry-specific experience, JPI stands among the most active privately held real estate companies in the country. JPI’s executive leadership team has an average of 25 years of comprehensive experience in multifamily developments – ranging from low-density garden apartments and mid- to high-density wrap and podium projects to student-living housing projects and mixed-use high-rise developments. The firm offers investment management, predevelopment, underwriting, marketing and asset management services as well as construction, financial and administrative services. To learn more about JPI, please visit JPI.com. 

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces, and sustainable real estate solutions for our clients, our people, and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.