Hampton Roads Resilience: HGI’s $86M Virginia Beach Buy Signals Continued Multifamily Strength

Virginia Beach, VA – In a move signaling continued confidence in the Hampton Roads multifamily market, Harbor Group International (HGI) has acquired Reflections at Virginia Beach, a 480-unit community, for $86 million. The purchase isn't simply an expansion of HGI’s portfolio; it’s a strategically calculated investment in a region demonstrating economic resilience and a clear demand for quality rental housing.

Built in 1986, Reflections underwent a $7 million renovation prior to the sale, upgrading units and amenities. This proactive investment played a significant role in attracting HGI, a privately-owned international real estate investment and management firm with approximately $21 billion in assets.

“The acquisition of Reflections at Virginia Beach underscores our commitment to expanding thoughtfully in markets where we have long-standing experience and strong performance,” said Yisroel Berg, Chief Investment Officer of Multifamily at HGI. The company already maintains a strong local presence, owning or managing over 1,400 units across five properties in the Hampton Roads metropolitan area.

Local Roots, Strategic Growth

For HGI, the appeal of Virginia Beach extends beyond just financial metrics. The company, headquartered in nearby Norfolk, views the region as a key component of its long-term investment strategy. The relatively short distance between Norfolk and Virginia Beach (approximately 15 minutes) allows for streamlined property management and a deeper understanding of the local market dynamics.

“HGI’s commitment to Hampton Roads is evident,” says a local real estate analyst. “They aren’t just buying properties; they're becoming a part of the community. This acquisition showcases their confidence in the long-term economic health of the region.”

Beyond its convenient location, the Hampton Roads area benefits from a diverse economic base, anchored by a significant military presence, a thriving tourism industry, and a growing technology sector. This combination of factors creates a stable demand for rental housing, making it an attractive market for investors like HGI.

The $7 million in renovations to Reflections at Virginia Beach weren’t merely cosmetic. The upgrades targeted key areas, including modernized kitchens and bathrooms, updated appliances, and enhanced community amenities like a fitness center, pool, and outdoor spaces. These improvements cater to the evolving preferences of renters, who increasingly prioritize lifestyle amenities and modern living spaces.

“The renovations were a major selling point,” said a source close to the deal. “HGI recognized the potential to elevate the property and attract a higher-quality tenant base. The upgrades also positioned the property favorably against competing communities in the area.”

Riding the Multifamily Wave

The acquisition of Reflections at Virginia Beach also reflects broader trends in the multifamily housing market. Despite recent economic headwinds, demand for rental housing remains strong, particularly in metropolitan areas. Factors contributing to this demand include rising home prices, limited housing supply, and changing demographics.

“The fundamentals of the multifamily market remain solid,” says a market analyst specializing in the sector. “Even with economic uncertainty, people still need a place to live. Rental housing provides a flexible and affordable option for many, and demand continues to outpace supply in many markets.”

The garden-style apartment format of Reflections at Virginia Beach is also proving increasingly popular. These communities offer a more suburban feel, with spacious layouts and access to outdoor amenities. They appeal to a broad range of renters, including families, young professionals, and empty nesters.

Analysts estimate the property value could increase by 15-20% following the completion of the renovations and lease-up. Rental rates are also expected to rise by 10-15% as the property attracts higher-income tenants.

Value-Add: HGI’s Signature Strategy

HGI’s investment philosophy centers around value-add real estate – identifying properties with untapped potential and enhancing their value through strategic improvements. This approach allows the company to generate higher returns and create a competitive advantage in the market.

“HGI has a proven track record of successfully executing value-add strategies,” said a source familiar with the company’s investment approach. “They're not just buying properties; they're actively improving them and creating a better living experience for tenants.”

The company's commitment to sustainability also plays a role in its value-add strategy. The renovations to Reflections at Virginia Beach included energy-efficient upgrades and smart home technology, which appeal to environmentally conscious renters and reduce operating costs.

Looking Ahead

The acquisition of Reflections at Virginia Beach is a positive sign for the Hampton Roads economy. It demonstrates investor confidence in the region's long-term growth potential and underscores the importance of the multifamily housing sector.

Analysts expect HGI to continue investing in the Hampton Roads area, seeking out additional opportunities to acquire and improve properties. The company's commitment to the region will likely attract other investors, further boosting the local economy.

“HGI’s presence in Hampton Roads is a strong indicator of the region’s resilience and potential,” said a local economic development official. “They’re not just investing in properties; they’re investing in our community.”

The success of this acquisition, and the broader strength of the Hampton Roads multifamily market, reinforces the idea that strategic investment in quality rental housing remains a sound strategy, even in a dynamic economic environment.