Morgan Properties acquired nearly 80 apartment communities encompassing approximately 15,000 units across eight states this past October.
KING OF PRUSSIA, PA— Locally-based Morgan Properties reports it has acquired five separate K-Series B-Pieces from Freddie Mac in 2019. The total size of those five deals is $5.3 billion and encompasses more than 50,000 units.
The five B-Pieces that Morgan Properties acquired had a total face amount of $400 million. Additionally, $674 million, or 13% of the total unpaid principal balance were loans where Morgan Properties was also the underlying borrower.
Since launching its credit platform in September 2017, Morgan Properties has closed on nine K-Series B-Pieces across $8.5 billion in loans, of which $1.4 billion, or 16% of the total UPB, were loans where Morgan Properties was the underlying borrower. The nine B-Pieces have a total face amount of $637 million.
"Since launching our credit platform in 2017, we have quickly become one of the most active Freddie Mac B-Piece investors. Our ability to leverage off our team's multifamily expertise and proprietary data analytics will result in superior risk-adjusted returns to our investors," says Jason Morgan, Principal at Morgan Properties. "Additionally, we have actively pursued opportunities where Morgan Properties loans represent a significant concentration of the total collateral, which provides us further confidence in these investments given our company's exemplary track record."
Details on the five K-Series Deals Morgan Properties closed in 2019 include:
K-88: The issuance is supported by a pool of 64 multifamily mortgage loans. At closing, the total loan balance represented by the Pass-Through Certificates was approximately $1.4 billion and the B-Piece that Morgan Properties acquired had a face amount of approximately $108 million.
K-94: The issuance is supported by a pool of 65 multifamily mortgage loans. At closing, the total loan balance represented by the Pass-Through Certificates was approximately $1.3 billion and the B-Piece that Morgan Properties acquired had a face amount of approximately $100 million.
K-W09: The issuance is supported by a pool of 43 multifamily mortgage loans. At closing, the total loan balance represented by the Pass-Through Certificates was approximately $627 million and the B-Piece that Morgan Properties acquired had a face amount of approximately $47 million.
K-G02: The issuance is supported by a pool of 17 multifamily mortgage loans. At closing, the total loan balance represented by the Pass-Through Certificates was approximately $544 million and the B-Piece that Morgan Properties acquired had a face amount of approximately $41 million.
K-102: The issuance is supported by a pool of 46 multifamily mortgage loans. At closing, the total loan balance represented by the Pass-Through Certificates was $1.37 billion and the B-Piece that Morgan Properties acquired had a face amount of approximately $103 million.
Morgan Properties and its affiliates own and manage a multifamily portfolio comprised of 300 apartment communities and over 75,000 units located in 15 states, primarily in the Mid-Atlantic and Northeast regions. Morgan Properties is currently the largest multifamily owner in Pennsylvania, Maryland and New York, as well as the fifth largest apartment owner in the country.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
