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 that it has completed the recapitalization of North Hill Apartments, a 148, has completed a one-unit multi-family rental property in Virginia Beach, Virginia, just one year after purchasing the asset.
The recapitalization is the first transaction between HPP and Machine Investment Group (MIG) – a real estate investment platform focused on opportunistic, distressed and special situations in the United States – as the two companies seek a strategic partnership to acquire value real estate across the country.
“We are extremely pleased to have achieved this part 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 leading to a higher rent led trajectory for the property,” said Griffin Hoffmann, Partner at HPP Real Estate. “Eric and the MIG team are experienced, dedicated and fun to work with. Their institutional investment platform is a perfect complement to HPP’s platform; We look forward to advancing our partnership together.”
HPP acquired the 126,936 square foot property in September 2021 for $28,175,000. Following the purchase, HPP embarked on a significant multi-million dollar capital improvement program that included a complete renaming of the property; the addition of a state-of-the-art fitness center; and a renovation of the facility’s pool area, a redesigned dog park, colon cleanups 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 over 25 percent across the property in less than 12 months. Renovations at the property are expected to be completed in the fourth quarter of 2022.
The new joint venture plans to complete the implemented value-add program and further reposition the property into a Class A rental community in Virginia Beach, Virginia’s desirable Hilltop submarket, just minutes from the beach.
“The completion of this transaction with MIG marks the successful execution of HPP’s strategy of combining the depth of our GP family office-based capital structure with world-class institutional-level LP investment partners,” he added Mitchel Hill, Managing Partner at HPP Real Estate.
“HPP’s operational experience, creativity and professionalism made them an excellent partner to work with on the recapitalization of North Hill Apartments. The institutional quality of this multi-family home and HPP’s plans are a good fit for our fund as we continue to deploy capital across the US,” he said Eric Rosenthal, co-founder and managing partner of MIG. “We look forward to working with HPP in the near future on future transactions.”
HPP is committed to making significant GP and Co-GP investments in the near term with a target investment range per transaction of between $1.5 million and $10 million in GP capital, while MIG recently announced the closing of Machinery Real Estate Fund I with approximately $350 million in primary and co-investment capital to identify value-added and opportunistic investments across 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 living area of 858 square feet. The complex is located in 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. The North Hill Apartments are less than 8 minutes from the Virginia Beach shoreline and boardwalk, providing residents with a unique sense of location and convenience. For more information on North Hill Apartments visit https://www.livenorthhillapts.com/#
PICTURES: 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 focused on the acquisition and development of commercial and multi-family real estate properties throughout the United States. As an owner, operator and developer, HPP strives to deliver superior returns for its investors and partners by combining an opportunistic strategy with careful and conservative underwriting and leveraging extensive industry relationships to find and execute creative and unique businesses. HPP is backed by major family offices and focuses on GP, Co-GP and controlling LP opportunities. HPP has also placed several debt investments through its lending program. HPP was founded in 2015 by managing partner Mitchel Hill and in 2021, through the addition of partner Griffin Hoffmann, has acquired, developed and invested in over 10,000 multi-family homes and several 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, visit https://hillpropertypartners.com
Machine Investment Group is a real estate investment platform focused on opportunistic, distressed and special situations in the United States. Founded by former executives of Garrison Investment Group, Machine invests primarily in the middle market, where its reputation for reliable counterparty, solution-oriented approach and extensive lender relationships set it apart from the competition. Machine’s rigorous risk discipline, institutional operating processes and well-developed sourcing network have been cyclically tested and are designed to deliver consistent, opportunistic returns while minimizing losses. Visit https://machineinv.com for more information
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b8f5a1cb-99df-404a-8b40-d59503d36f99