March 18, 2019
Philadelphia-based Morgan Properties secured $688 million in acquisition financing for a 10-property, 4,130-unit multifamily portfolio in Pennsylvania and Virginia. Berkadia’s Jim Badolato and Michael McKee arranged the financing with Fannie Mae on behalf of the borrower.
The loan package is comprised of individual 10-year fixed rate first mortgages, with seven years of interest only and sub-4% interest rates. The loans exceeded 77% of the total purchase price. Morgan Properties plans to invest $20 million into renovations and amenity upgrades in these properties.
The Philadelphia assets consist of seven apartment communities totaling 2,346 units. Stonegate at Devon, Villas at Bryn Mawr and Bryn Mawr (pictured) total 947 units. The remaining assets, totaling 1,399 units, are situated in Conshohocken, West Chester, Downingtown, Jeffersonville, and Bensalem in suburban Philadelphia.
The Northern Virginia sub-portfolio consists of three apartment communities totaling 1,784 units. The largest is Mount Vernon Square in Alexandria (1,387 units), along with East Meadows and Village of Potomac Falls.
Morgan Properties’ Jason Morgan says, “This acquisition is a gamechanger for our organization.”
For comments, questions or concerns, please contact Dennis Kaiser