Harbor Group International closed on a $1.6 billion fund to finance apartment buildings and other multifamily properties as higher interest rates offer attractive returns for lenders willing to put money at risk.
A unit of the Canada Pension Plan Investment Board committed $585 million to the HGI Multifamily Credit Fund, the company said Wednesday. The fund offers fixed and floating-rate senior, mezzanine and preferred-equity loans at rates of about 8% to 12% depending on the type of debt, according to Richard Litton, president of HGI.