TODAY’S DEALS: Morgan Properties, The Olayan Group Buy $309M Apartment Portfolio

Maryland & Virginia—Morgan Properties has completed a major acquisition with joint venture partner The Olayan Group. The duo announced today that they have acquired a 2,671-unit apartment portfolio from Berkshire Property Advisors for $309 million. Known as the Mid-Atlantic Portfolio, the apartment communities are located in the Maryland-Washington, D.C., corridor: specifically, Fort Washington, Hyattsville, Laurel and Parkville, Md., and Newport News, Va. CBRE Group Inc. represented Berkshire in the sale.

“The Mid-Atlantic Portfolio is a major acquisition for our organization,” says Mitchell Morgan, founder and CEO of Morgan Properties. “Our team is prepared to add tremendous value to the assets. Given our local market knowledge and operational expertise, Morgan Properties is the right operator to efficiently manage and enhance the value of the portfolio. We are excited to collaborate with Olayan and we are looking forward to owning these assets and executing our business plan.”

The portfolio features what Morgan Properties categorizes as ‘excellent value-add opportunities.’ The firm plans to capitalize on this by implementing a portfolio-wide renovation program consisting of 350 kitchen and bath renovations and 450 washer and dryer installations. They will also be upgrading amenities like clubhouses, fitness centers, resident lounges and dog parks. Morgan Properties also plans to bring a number of new employees to their company from Berkshire.

Since 2011, Morgan Properties has closed over $800 million in new acquisitions comprised of more than 7,000 units.

Florida development site trades for $15.4M

Sunrise, Fla.—The Richman Group has picked up a 6.9-acre multifamily development site in the heart of Sunrise, Fla., from K-Group Holdings in an ARA-brokered sale. At more than $2.3 million per acre, this sale represents a high-water mark for land prices at Sunrise.

Located just west of the Sawgrass Mills outlet mall and adjacent to the proposed 65-acre mixed-use development of Metropica, the site will eventually host a 417-unit apartment development called Portico comprised of four-, five- and six-story buildings with structured parking.

“All of the key ingredients for growth exist in Sunrise,” notes ARA’s Troy Ballard, senior vice president. “The city benefits from key regional job drivers and attractions such as Sawgrass Mills, The BB&T Center (home of the Florida Panthers), and the 660-acre Markham Park. Further, the recent completion of the Express Lanes on I-595 makes it easier than ever for Sunrise residents to commute to downtown Fort Lauderdale.”

American Express recently completed a $21.5 million purchase of a nearby site that it will develop as their regional headquarters, consolidating operations in Plantation, Miramar and Weston. The site adds to The Sawgrass Corporate Market, which consists of 2.7 million square feet of office space.

“Sunrise is firing on all cylinders,” adds Ballard. “Residential, retail and office sectors are all performing well and we expect them to continue to do so for the foreseeable future.”

NorthMarq Capital secures $32M for multifamily properties

Orlando, Fla.—Melissa Marcolini Quinn, senior vice president/managing director of NorthMarq Capital’s Orlando based regional office arranged acquisition financing of $32 million for three multifamily properties, consisting of 702-units, located in Cleveland, Ohio. The high leverage loan equaled 77 percent of the acquisition cost and was structured with a 10-year term and a two-year interest only period followed by a 30-year amortization schedule. NorthMarq arranged the acquisition for the borrower through its relationship with a CMBS lender.

“This is the second transaction this year we closed with the same borrower and investor,” says Quinn. “Despite numerous hurdles outside our borrower’s control, we were able to successfully close this acquisition financing within the purchase contract deadline.”