TODAY’S DEALS: Morgan, Olayan Snag 800 Units in Maryland
Nearly 800 units trade hands in Maryland; a mixed-use portfolio sells in Manhattan for the first time in 30 years; and Grosvenor Americas sells Puget Sound apartments for $25.5 million.
Reistertown, Md.—Morgan Properties and its joint venture partner The Olayan Group have acquired a 791-unit community in Reistertown, Md., known as The Preserve at Owings Crossing. This is the second deal that Morgan has closed with Olayan this year. Earlier this year, the Morgan Properties-Olayan partnership acquired the Mid-Atlantic Portfolio from Berkshire Property Advisors, which was comprised of nine assets and 2,671 units located in Maryland and Virginia. JLL represented the seller on the disposition.
“The Preserve is an exciting acquisition for our organization,” says Mitchell Morgan, founded and CEO of Morgan Properties. “We are pleased to continue doing deals with our partner Olayan. Our Maryland team will add tremendous value to the asset. Given our local market knowledge and operational expertise, Morgan Properties is the right operator to efficiently manage and enhance the value of the asset. We are excited to collaborate with Olayan and our team looks forward to owning the property and executing our business plan.”
Morgan Properties also owns and manages Chartleytowne Apartments, a 692-unit apartment community in Reisterstown. Originally built in two phases in 1965 and 1973, The Preserve offers the residents a comprehensive amenities package including a full-service leasing office with a fitness center, a swimming pool, tennis and volleyball court, playground areas and a dog park.
Marcus & Millichap arranges $80.8M mixed-use portfolio sale in Manhattan
New York—Marcus & Millichap has sold a mixed-use portfolio in Manhattan’s Upper West Side. The six-property portfolio includes 152 units and 7,900 square feet of retail. The $80.75 million sales price equates to approximately $515,000 per unit.
This is the first time in 30 years that the properties, 500 Cathedral Parkway, 3143 Broadway, 3147 Broadway, 3149 Broadway, 111 West 104th St. and 242 West 109th St. have changed hands. In total, the properties offer 62,655 square feet of air rights, providing the option of future development projects. All of the buildings are located near New York City universities, including Columbia University, City College and Barnard College.
Marco Lala, in Marcus & Millichap’s Manhattan office, represented the seller and the buyer, both private investors and repeat clients of the firm.
“This transaction underscores the continued strength of New York City’s multifamily marketplace in general and above 96th Street in particular,” says Lala. “The portfolio possesses a difficult-to-find combination of free-market units, rent-stabilized tenants and a select group of retail stores that creates a stable investment with significant upside potential.”
Grosvenor Americas sells Puget Sound apartments for $25.5M
Seattle—Grosvenor Americas has sold BluWater, a 152-unit luxury lakeside apartment community in Everett, Wash., to Coast Equity Partners for $25.5 million. Kidder Mathews represented Grosvenor in the transaction.
The property was extensively renovated and upgraded by Grosvenor after the company acquired it in 2007. The clubhouse was expanded and upgraded with a slate entry, new furnishings, custom cabinetry and contemporary residents’ lounge. Residents also enjoy a modernized fitness center with views of Silver Lake, theater room, Wi-Fi lounge, business center and kitchenette. Improvements to outdoor amenity spaces encourage stronger community connections and include a courtyard, playground, walking trails and an all-season indoor-outdoor pool.
The property comprises seven two- and three-story buildings, originally constructed in 1991. Upgraded one-, two- and three-bedroom apartment homes feature rustic cherry cabinets, stainless steel appliances, wood-burning fireplaces, full-sized washers and dryers, and private patios or balconies. Upper-level units have vaulted ceilings.
BluWater is located 25 minutes north of downtown Seattle in the Silver Lake neighborhood of Puget Sound, straddling the cities of Everett to the west, Mill Creek to the east and Bothell to the south. It provides quick access to Seattle’s Eastside high-tech corridor, Boeing’s main production facility and the life science and technology employment hub of Bothell.
“Grosvenor has successfully sold Bluwater, which provides capital for further opportunistic investment,” says Michael Beattie, chief investment officer, Grosvenor Americas. “We intend to continue our value-add rental property acquisition program in the Puget Sound region, while expanding our multifamily portfolio in other major markets.”
Grosvenor Americas now owns (wholly or in joint-venture partnerships) more than 2,400 multifamily rental units in the United States and Canada; some 80 percent of these units are located on the West Coast. Residential communities owned by Grosvenor are located in the Lynnwood, Redmond, Kirkland, Woodinville, Bothell regions around Puget Sound.
“We are excited about the Seattle market and the Mill Creek submarket in particular. We view BluWater as an outstanding addition to our portfolio,” says Josh Jansen, vice president and head of acquisitions for new owner Coast Equity Partners, a Seattle-area real estate investment group that owns more than 1,100 apartment units in the Puget Sound Region. “Working with Grosvenor and their staff was great,” adds Jansen. “Their team and their representatives from Kidder Mathews were professional and helpful throughout the contract period.”