Morgan Properties Buys 2 Portfolios for $781M
The purchase includes 18 properties across four states.
Morgan Properties has acquired 18 communities encompassing 4,724 units in Georgia, Florida and the Carolinas. Middle Street Partners and its joint venture partner The InterTech Group sold a 15-community portfolio for $648 million, while Northland Investment Corp., sold a three-property portfolio for $133 million.
With this purchase, Morgan Properties now owns and operates 10,540 units in the Sun Belt region and a total of 95,000 units across the U.S.
The MSP portfolio consists of 4,102 units, including Hampton Greene Apartments (304 units) in Columbia, S.C., and Seagrass Apartment Homes (396 units) in Jacksonville, Fla. Overall, the portfolio includes luxury and workforce communities, spread across Columbia and Greenville, S.C., Fayetteville and Charlotte N.C., Jacksonville Fla., or Augusta, Ga.
The Northland portfolio is in West Palm Beach, Fla., and encompasses 622 units. Royal St. George (224 units), Village Place (202 units) and Windward at the Villages (196 units) are all on Brandywine Road, within walking distance of each other.
Berkadia’s Miami-based Managing Director Jaret Turkell and Senior Managing Director Roberto Pesant represented Northland in the sale, while Director TJ Piper, based in Berkadia’s Philadelphia office, secured a bridge loan to finance the three-property acquisition.
Middle Street Partners and The InterTech Group plan to reallocate $333 million of the capital into the acquisition of 2,263 units in Houston and two developments in Nashville and Chattanooga, Tenn.
Focused on growth
Morgan Properties intends to inject $47.5 million into repositioning the two portfolios. Improvements will include washer and dryer installations, kitchen upgrades, package rooms additions, bike-share programs and upgraded outdoor amenities.
The company searches for substantial portfolios that allow them to further expand their Class B workforce housing platform, while also diversifying with the acquisitions of newer, Class A communities, Principal Jason Morgan said in a prepared statement.
Furthermore, Morgan Properties plans to continue to expand its presence in the Sun Belt region and similar growth markets, and to create and retain jobs, Jonathan Morgan, president of Morgan Properties JV, said in prepared remarks. The firm intends to add roughly 90 new employees from the portfolio of acquired properties, through either existing positions or creating new roles. Morgan Properties employs more than 2,600 people across the nation.
The two portfolio buys come after Morgan Properties’ $1.75 billion portfolio acquisition in partnership with Olayan America.