Morgan Properties Continues Acquisition Spree With 2,800-Unit Maryland Portfolio
Philadelphia-based Morgan Properties is continuing to grow its portfolio of D.C.-area apartment communities with a four-property Maryland deal.
The investor acquired four communities totaling 2,729 units from a JV of Rockpoint Group and Sawyer Realty Holdings for $277.5M, GlobeSt reports.
The Maryland portfolio is spread throughout the D.C. and Baltimore region. It includes the 474-unit Princeton Estates in Temple Hills, the 806-unit Carriage Hill in Randallstown, the 884-unit Glen Oaks in Woodlawn and the 279-unit Charlesmont Apartments in Dundalk.
The deal follows Morgan's August acquisition of the 2,664-unit Mark Center portfolio in Alexandria from JBG. Earlier this year, it acquired another six-asset, 1,979-unit Maryland portfolio from Harbor Group International.
Morgan Properties now has more than 26,000 units in its D.C., Maryland and Virginia portfolio, compared to roughly 4,000 units in 2012. The investor has deployed a strategy of acquiring large Class-B portfolios where it can renovate and increase rents, but keep them much more affordable than newer Class-A product.
"What we see in the B space right now, in workforce housing, you have this captive audience," Morgan Properties President Jonathan Morgan said Tuesday at Bisnow's BMAC East event. "There’s a lot of pent-up demand. In a good economy, when the market improves, you’re going to see the Class-C resident base will upgrade to the B space. And in a downturn, you’re going to see the A resident move down to B."