One of the Nation's Largest Apartment Owners Grows Bigger With Midwest Expansion
One of the largest apartment owners in the country had a busy July buying up older properties across the Midwest.
King of Prussia, Pennsylvania-based Morgan Properties set a sales record in Indiana in addition to purchasing three properties totaling around 1,000 units in the Chicago suburbs last month. Morgan Properties paid a combined $410 million for the Chicago portfolio and Indiana portfolio, which includes five properties, according to a statement from the company.
Morgan Properties didn't reveal the price it paid for each portfolio, but the Cushman & Wakefield broker on the Indiana deal said the sale was the largest by total dollar volume to date in Indiana. Morgan Properties plans to invest over $40 million in capital improvements across the two portfolios, according to the statement.
In the suburban Chicago deal, Morgan Properties picked up the 438-unit Lakes of Schaumburg in Schaumburg, the 371-unit Blackhawk Apartments in Elgin and the 204-unit Gates of Deer Grove in Palatine. They are located about 30 to 40 miles northwest of Chicago.
Morgan Properties is the third-largest apartment owner in the country behind MAA, which is based in Germantown, Tennessee, and Miami Beach, Florida-based Starwood Capital Group. Morgan Properties now owns more than 95,000 units across 19 states.
The Chicago-area properties were among the 25 apartments that seller Norfolk, Virginia-based Harbor Group International bought five years ago from Lone Star Funds, based in Dallas, for $1.8 billion.
The three range in age from 35 to 51 years old, similar in vintage to the Indiana properties. Vacancy rates range from 2.9% at The Gates of Deer Grove to 4.7% at The Lakes of Schaumburg.
Jonathan Morgan, president of Morgan Properties JV, said in the statement that the company’s Midwest acquisitions marked another move in its strategy to diversify beyond the mid-Atlantic region.