HPP Real Estate and Machine Investment Group Partner on Recapitalization of North Hill ...

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 Hoffmann, 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, gut 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.