LANSDALE, PA - Morgan Properties has taken ownership of the Silk Factory Lofts, a 116-unit apartment community here that was originally built as the Interstate Hosiery Mill and is listed on the National Registry of Historic Places.
The historic factory building, where silk stockings were produced until the 1940s, had been restored and converted into upscale residential loft units in 2008. Its owners could not perform on the mortgage and the property was returned to the lender, GE Capital. Morgan Properties joined with CBRE Capital Partners property to purchase the non-performing loan after a sheriff’s sale auction. The final price was not disclosed.
The Silk Factory Lofts is the second distressed note purchased in the Philadelphia area by Morgan Properties within 12 months.
The company, which owns and manages 120 Class B apartment communities with over 30,000 unites, is actively pursuing “compelling distressed debt investments” in multi-family properties in the Philadelphia, New York, New Jersey and the Baltimore-Washington, D.C. corridor, according to Jonathan Morgan, who is the company’s director of acquisitions.
“We are currently well-positioned to expand our distressed debt investment platform,” said Morgan. “We target acquisitions where we have an attractive basis going in, and can capitalize on getting control of the real estate and implementing a value-add re-positioning strategy.”
Silk Factory Lofts – which has one-, two- and three-bedroom apartments renting for $1,095 to $1,695 a month – is the fourth acquisition that Morgan Properties closed in 2012.
CBRE Capital Partners, the real estate debt investment platform of CBRE Global Investors, was established in 2008 during the real estate debt markets crisis. It invests in both performing and non-performing commercial mortgages as well as mezzanine debt, real estate debt securities, preferred equity, and B notes.
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