Morgan Properties To Pay $1.4B For 6,700 Apartments Around D.C., Baltimore, Philadelphia

Morningside Heights Owings Mills
The entrance to the Morningside Heights apartment community in Owings Mills

One of the most active buyers of Class-B apartments in the Mid-Atlantic is continuing its acquisition spree.

Morgan Properties is under contract to buy a 15-property portfolio in the D.C., Baltimore and Philadelphia areas from Lone Star Funds for $1.4B, Real Estate Alert reports.

The portfolio consists of 6,696 units, bringing the deal to roughly $211K/unit. The largest community is the 1,387-unit Mount Vernon Square complex in Alexandria, Virginia.

The portfolio also includes the 1,050-unit Morningside Heights community in Owings Mills, Maryland, the 858-unit Charleston Place in Ellicott City, Maryland, the 631-unit Home Properties complex in Devon, Pennsylvania, and 11 other communities with less than 400 units each.

Lone Star is also selling a portfolio of four Pennsylvania apartment communities to One Wall Partners for $180M, Real Estate Alert reports. CBRE is brokering both deals, which are expected to close in the coming weeks.

King of Prussia, Pennsylvania-based Morgan Properties has been rapidly scooping up apartments in the region. Its D.C.-Maryland-Virginia portfolio grew from 4,000 units in 2012 to 24,000 units as of November 2017, after it bought a four-property Maryland portfolio for $278M and a 2,700-unit Alexandria portfolio for $509M. The investor bought another Alexandria community in September for $62.3M.

Morgan Properties President Jonathan Morgan told Bisnow in November 2017 the company has been bullish on Class-B apartment properties in the D.C. region.

"From our standpoint, Class-B is where the party's at," Morgan said. "We are buying existing structures with a value-add strategy. We don't develop. The reason we've been growing so quickly in Maryland is it's been working. It's rinse, recycle, repeat."

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