HPP Real Estate and Machine Investment Group Partner on
NEW YORK, Sept. 20, 2022 (GLOBE NEWSWIRE) — New York-based HPP Real Estate, a division of Hill Property Partners LLC (HPP), is pleased to announce it has closed on the recapitalization of North Hill Apartments, a 148 -unit multifamily rental property located in Virginia Beach, Va., just one year after purchasing the asset.
The recapitalization marks the first transaction between HPP and Machine Investment Group (MIG)—a real estate investment platform focused on opportunistic, distressed, and special situations across the United States—as the two companies look to form a strategic partnership to buy value-add properties throughout the country.
“We are very pleased to have accomplished this portion of our business plan for North Hill—to complete an institutional level recapitalization following the implementation of an asset repositioning program that included extensive on-site capital improvements and a rebranding strategy that resulted in a higher rent trajectory for the property,” said Griffin Hoffman, Partner at HPP Real Estate. “Eric and the MIG team are experienced, dedicated and a pleasure to work with. Their institutional investment platform is a perfect complement to HPP’s platform; we are excited to continue our partnership together moving forward.”
HPP acquired the 126,936-square-foot property in September 2021 for $28,175,000. Following the purchase, HPP embarked on a significant multimillion-dollar capital improvement program that included a full rebranding of the property; the addition of a state-of-the-art fitness center; and a renovation of the facility’s pool area, a revamped dog park, well renovations of individual units, and additional updates throughout the property. HPP also retained Greystar to manage the property. As a result, HPP has realized rent increases of 25-plus percent property wide in less than 12 months. Renovations at the property are expected to be completed in Q4 of 2022.
The new joint venture plans to complete the value-add program that has been implemented and continue to reposition the asset into a class A rental community in the desired Hilltop submarket of Virginia Beach, Va. just minutes from the beach.
“The closing of this transaction with MIG marks the successful realization of HPP’s strategy to combine the depth of our GP family office-based capital structure with top tier institutional level LP investment partners”, added Mitchel Hill, Managing Partner at HPP Real Estate.
“HPP’s operational experience, creativity and professionalism made them an excellent partner to team up with on the recapitalization of North Hill Apartments. The institutional quality of this multi-family asset and HPP’s plans for it fit nicely within our fund as we continue to deploy capital across the US,” said Eric Rosenthal, co-founder and managing partner of MIG. “We look forward to working with HPP on future transactions in the near term.”
HPP is seeking to make significant GP and Co-GP investments in the near term with a target investment range per transaction of between $1.5 to $10 million in GP capital, while MIG recently announced the closing of Machine Real Estate Fund I with approximately $350M in primary and co-investment capital to identify value-add and opportunistic investments across all commercial asset classes and capital stack positions.
About North Hill Apartments
Built in 1985 and renovated in 2022, North Hill Apartments features 148 two-bedroom residences with an average unit size of 858 square feet. The complex is located within the exclusive Hilltop Retail Corridor, one of the most desirable neighborhoods in all of Virginia Beach due to its robust collection of national and local retailers. Nearby retailers include grocers such as Trader Joes, Walmart, Target and Whole Foods. North Hill Apartments is less than 8-minutes from the Virginia Beach oceanfront and boardwalk, creating a unique sense of place and amenity for residents. For more information on North Hill Apartments, please visit https://www.livenorthhillapts.com/#
IMAGE: To view and download images of North Hill Apartments, please visit: https://www.dropbox.com/sh/6no02o9iiehpthl/AACsAg44nT1hWfftDUee1N4Ya?dl=0
HPP Real Estate LLC, a division of Hill Property Partners, (“HPP”) is a private investment firm that focuses on acquiring and developing commercial and multifamily real estate investments throughout the United States. As an owner, operator, and developer, HPP strives to achieve above market returns for its investors and partners by combining an opportunistic strategy with diligent and conservative underwriting and leveraging extensive relationships in the industry to source and execute creative and unique deals. Backed by significant family offices, HPP focuses on GP, Co-GP and controlling LP opportunities. HPP has also placed multiple debt investments through its lending program. Founded in 2015 by managing partner Mitchel Hill, and with the addition in 2021 of partner Griffin Hoffmann, HPP has acquired, developed, and invested in over 10,000 multi-family units, as well as multiple mixed use and commercial office properties in various US markets . HPP’s offices are currently located in New York City and Port Washington, NY. For more information, please visit https://hillpropertypartners.com
Machine Investment Group is a real estate investment platform focused on opportunistic, distressed, and special situations across the United States. Founded by former senior executives from Garrison Investment Group, Machine invests primarily in the middle market, where its reputation as a reliable counterparty, its solutions-oriented approach and extensive lender relationships distinguishes the firm from the competition. Machine’s strict risk discipline, institutional operating processes and well-developed sourcing network has been cycle-tested and is designed to deliver consistent, opportunistic returns while minimizing losses. For more information, please visit https://machineinv.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b8f5a1cb-99df-404a-8b40-d59503d36f99