CRANFORD, NJ-NJ-New Jersey's largest apartment landlord, Morgan Properties, has obtained a series of loans totaling $1.2 billion to refinance slightly more than half of its multifamily portfolio– including more than 50 apartment communities in this state.
The biggest of the New Jersey properties is the 666-unit Elmwood Village Apartments located in Elmwood Park. Berkadia Commercial Mortgage originated the refinancing of a total of 73 apartment complexes owned by Morgan, with a total of 13,799 units.
Other refinanced properties are located in New York, Pennsylvania, Delaware and Maryland.
Berkadia said that 71 of the properties were eligible for Freddie Mac's K Deal Program and that all loans were made at sub-4% rates.
Morgan, based in King of Prussia, PA, owns and manages a portfolio of 30,000 units spread across ten states. It is one of the largest private multifamily owners in the Northeast and Mid-Atlantic regions.
“This transaction is the largest refinancing in the history of Morgan Properties dating back to our company's inception in 1985,” said Mitchell Morgan, founder, president and CEO of the company in a statement.
“We saw this as an unprecedented time to refinance our existing portfolio, by locking in attractive long-term financing at historically low interest rates,” said Morgan.
Freddie Mac provided 10-year fixed-rate financing with a partial interest-only period. Its K Deal program is for individual property loans that are not cross-collateralized. The loans will amortize over 30 years after the interest-only period.
The apartment communities include a mix of garden, mid-rise and high-rise buildings, with an average occupancy rate of 95%.
Morgan acquired most of its New Jersey multifamily property as part of its $1.9 billion acquisition of Kushner's portfolio in 2007. Morgan acquired 16,800 units and doubled the size of its portfolio holdings at that time – vaulting into position as the Number 1 landlord in the state. Morgan Properties has since upgraded more than 3,000 of those units.
Some of Morgan's newer properties are: Cranford Crossing, a Westfield apartment building that was built in 2007 and has 50 units with retail shops; The Mews at Annandale, a 221-unit apartment community in Annandale, built in 2003; and Horizons at Franklin Lakes, a 120-unit apartment community in Franklin Lakes, built in 2004 with amenities including a movie theater, fitness center, resident lounge and cyber café.
“Morgan Properties is now extremely well positioned for continued growth in the multifamily sector,” said Jonathan Morgan, director of acquisitions for the company. “Since rent growth is only a partial inflationary hedge, we felt compelled to secure attractive fixed-rate, long-term financing to mitigate future interest rate and refinancing risks.”
He said Morgan Properties has acquired over 2,800 units over the last 18 months.
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