Morgan Properties has significantly expanded its multifamily presence in Fayetteville, N.C., with the acquisition of two communities. The company acquired the portfolio on behalf of Morganton Development for an undisclosed price from Walker & Dunlop.
The portfolio includes Westlake at Morganton and The Preserve at Grande Oaks, which have an average vintage of 2007, and adds 642 units to Morgan Properties’ portfolio. Both of the communities offer one-, two- and three-bedroom units and common amenities including a pool, fitness center, business center, entertainment lounge and movie theater room. Residents of Westlake at Morganton also have direct access to the parking garages. According to Morgan Properties, both the communities have an occupancy rate of at least 97 percent.
The new ownership has a value-add strategy for the two communities that involves $7 million of interior upgrades and smart home tech packages for its units. The plans call for a new clubhouse, bike share program, dog parks, patios for grilling, and other new community amenities.
Jason Morgan, principal & president of Morgan Properties Special Situations, said in prepared remarks that the company focuses more on Class B communities, but acquiring Class A properties in markets with high population growth and undersupply of multifamily housing was a good opportunity. Morgan also said in prepared remarks that Fayetteville remained an attractive market since it’s the sixth largest city in North Carolina and is home to Fort Bragg. The city is also home to several major companies, including Cape Fear Valley Health Systems, Goodyear Tire and Mann + Hummel.
UP TO FIVE COMMUNITIES IN FAYETTEVILLE
With the latest acquisitions, Morgan Properties now owns and operates five communities in the Fayetteville market, totaling 1,530 units. The company entered the North Carolina market in 2016, but acquired its first three communities in Fayetteville last year, Morgan said in prepared remarks.
Morgan Properties made a major acquisition of two portfolios totaling 4,724 units that included communities in Georgia, Florida and the Carolinas in November. The company’s North Carolina portfolio stretches beyond Fayetteville and also includes communities in Raleigh, Charlotte and Salisbury. With the two latest Fayetteville purchases, Morgan Properties’ portfolio now totals more than 93,000 units across 19 states.