Morgan Properties Purchases 2,800 Class B Apartments in the Metro Area

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By Melody Simmons  –  Reporter, Baltimore Business Journal
Dec 13, 2017, 12:19pm EST Updated an hour ago

Close to 2,800 Class B apartment units in the metro area were recently purchased by a suburban Philadelphia real estate group that has Baltimore on its radar screen.

Morgan Properties, of King of Prussia, Pennsylvania, spent a total of $277.5 million for a four-property portfolio — a large portion of the 2,729 units located in the Dundalk, Randallstown and Woodlawn suburban market. It is the second big multi-family purchase by the company in the metro area this year. In February, Morgan Properties purchased Townhomes at Diamond Ridge, the Glens at Diamond Ridge and the Apartments at Diamond Ridge for $247 million. Renovations at the developments totaling another $25 million began in July.

The purchases of the properties is part of an ongoing trend for investment in Class B multi-family developments as an alternative to the Class A luxury apartment market. "Affordable issues in multi-family is a big factor," said Jonathan Morgan, president of Morgan Properties, on Wednesday. "And there is a big rent differential between Class A and Class B." Morgan said his company has expanded its portfolio in the Maryland and Washington, D.C., corridor to 24,000 units from a beginning mark of 4,300 units.

The company is the largest owner and operator of multi-family units in Maryland. The latest acquisition brought suburban developments into the company's portfolio. The properties are Gwynn Oaks in Woodlawn, Carriage Hill in Randallstown, Charlesmont Apartments in Dudnik and Princeton Estates in Temple Hills in Prince George's County. Morgan said upgrades were being planned for the developments. The seller was the Rockpoint Group. Morgan Properties' multifamily investments this year totaled $1.2 billion for more than 8,600 units. "Morgan Properties’ growth has been tremendous this year. We have closed five transactions in four states with three capital partners," he said. "We have emerged as a major player."