Morgan Properties, the largest owner and operator of multifamily residences in the state of Maryland, and Olayan America have acquired 2,566 apartment units in central Maryland as part of a massive acquisition that spanned 11 states.
The two companies announced Wednesday that they had purchased a portfolio of 48 apartment communities and 14,414 units, dubbed the North Star Portfolio, from Star Real Estate Ventures for $1.75 billion. The units made up the entirety of Star Real Estate Ventures’ holdings.
The 2,566 Maryland apartments comprise five communities: Charleston Place in Ellicott City, Morningside Heights in Owings Mills, Top Field in Cockeysville, Summerlin at Concord Apartment Homes in Olney and Village Square in Glen Burnie. Star Real Estate Ventures had originally purchased the five communities in 2019, for approximately $500 million, reports at the time stated.
Home Properties, a now-defunct real estate company based in New York, owned the properties before Star Real Estate Ventures.
“The North Star acquisition is a major milestone for our organization and a testament to our conviction in the fundamentals of class B multifamily,” Jonathan Morgan, president of Morgan Properties, said in a press release. “ While most of our competitors remain defensive and on the sidelines, Morgan Properties continues to play offense. North Star was right in our wheelhouse given the barriers to entry and we pounced on the opportunity to secure it.”
It is also the 13th transaction Morgan Properties and Olayan America have closed together, totaling $4.3 billion.
“We value our partnership with Olayan and are thrilled to close another monumental transaction together,” Morgan said.
Morgan Properties plans to invest $100 million in “enhancements and amenity upgrades to the properties of the North Star portfolio,” according to the press release.
Through this purchase, Morgan Properties acquired more units in the Baltimore metro area than in any other region, followed closely by the Tampa-St. Petersburg area in Florida, where it bought 1,972 units, and suburban Atlanta, where it purchased 1,180.
This acquisition, which positions Morgan Properties as the second-largest owner and operator of multifamily residences in America, is the company’s largest since 2019, when it acquired 18,000 units, mostly in upstate New York and areas in Pennsylvania.
Its last purchase in Maryland took place in 2018, when it bought Orchard Meadows, a 240-unit community in Ellicott City, for $50 million. The company owns a total of 51 communities and over 23,770 units in Maryland, having grown by nearly 20,000 units since 2012. Morgan Properties also owns over 5,000 units in nearby Northern Virginia.
Nationwide, Morgan Properties now owns 357 apartment communities totaling 90,000 units across 20 states, mainly in the mid-Atlantic and northeastern regions.