Leading multifamily owner Morgan Properties has expanded its portfolio in the Midwest with the acquisition of an 11-asset portfolio with 3,054 units from Trilogy Real Estate Group.
Ranked No. 3 on this year’s National Multifamily Housing Council’s top 50 apartment owners, this acquisition, valued at $501 million, signifies a milestone in the firm’s 40-year history, pushing it past the 100,000-unit mark.
Morgan Properties owns and operates over 360 communities in 22 states. According to the firm, its apartment holdings have more than doubled in the past six years under the leadership of Jonathan and Jason Morgan.
“Surpassing 100,000 units is a defining moment and a testament to the hard work and dedication of our entire organization, who have helped shape Morgan Properties into a best-in-class multifamily owner and operator,” said co-presidents Jonathan Morgan and Jason Morgan. “As we continue to strategically expand our national portfolio, we remain selective and opportunistic in this environment. Morgan Properties has a proven track record of acquiring large portfolios with significant barriers to entry and providing execution certainty.”
Ranging in vintage from 1989 to 2018, the communities are in Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio, Oklahoma, and Tennessee.
Morgan Properties will deploy a comprehensive value-add strategy to improve the marketability and comfort of the properties through physical and operational improvements. Upgrades will include new flooring, appliances, cabinets, and countertops; smart-home features; and an expansion and update of on-site amenities.
This portfolio transaction also marks a milestone for Trilogy Real Estate Group. According to the firm, it saw strong interest in the portfolio due to the attractive positioning of the properties and the recent uptick in demand for high-quality assets in the Midwest, which is experiencing more balanced supply and demand. Over 100 offers were received for the assets, allowing Trilogy to achieve outstanding returns for its investors.
“The sale of our portfolio to Morgan Properties represents another landmark achievement for Trilogy,” said founder and CEO Neil Gehani. “It reflects our unwavering commitment to delivering strong risk-adjusted returns to our investors while also enhancing the lives of our residents and the communities we serve. We are extremely proud of the value we’ve created over the past decade.”
Trilogy noted that Morgan Properties retained the existing property management teams across the portfolio, “which is a testament to the strength and quality of Trilogy's operating platform.”
“We are thrilled to have selected Morgan Properties as the new owner of the portfolio,” Gehani added. “Morgan has a proven track record of excellence in property management and shares our commitment to family values and resident satisfaction. We are confident they will carry on the legacy we’ve built and continue to provide safe, well-maintained, and community-centered environments.”
