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HUSREF – Harbert United States Real Estate Fund VI Closes on Springhouse Apartments

Harbert United States Real Estate Fund VI, L.P. (“HUSREF VI”), in conjunction with Croatan Investments (“Croatan” f/k/a FortCap Partners), acquired Springhouse Apartments (“Springhouse” or the “Property”), a 432-unit Class B apartment community in Newport News, Virginia.
Springhouse is a well-located property built in 1985 that was 97% occupied at acquisition. The Property is located near quality retailers and top employers in the Oyster Point business district. Nearby retailers include Whole Foods, Trader Joe’s, Wegman’s Grocery, Kohl’s, Starbucks, PF Chang’s and Dick’s Sporting Goods, among others.
This opportunity will allow the team to capitalize on a large spread between existing Class B and Class A properties in the submarket by undertaking a complete renovation of the units and amenities up to a Class A standard, while offering rents still well below comparable properties.
There will be limited new supply in the area due to zoning restrictions and lack of developable land, allowing the team to continue to push rents. The transaction closed on August 10, 2016 and represents the first joint venture between Harbert U.S. Real Estate and Croatan.