Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Thursday, 14 March 2019

Morgan Properties Pays $890.5Mln for 10 Pa., Va. Apartments; Becomes Top Dog in Pa.

Morgan Properties has paid $890.5 million for 10 apartment properties with 4,130 units in the Philadelphia and northern Virginia suburbs of Washington, D.C. The properties were purchased from Lone Star Funds. The Pennsylvania properties increased the company's portfolio in the state to 9,300 units, making it the commonwealth's big kahuna.

Commercial Real Estate Direct Staff Report

Morgan Properties has paid $890.5 million for 10 apartment properties with 4,130 units in the Philadelphia and northern Virginia suburbs of Washington, D.C.

The properties were purchased from Lone Star Funds, which had assumed them through its 2015 purchase of Home Properties Inc., a Rochester, N.Y., REIT that owned properties along the East Coast. They were sold as two pools, one with seven Philadelphia-area properties with 2,346 units and the other with three northern Virginia properties with 1,784 units.

The Philadelphia-area pool is the largest-ever apartment sales transaction in Pennsylvania history. It increased the size of Morgan's Pennsylvania portfolio to 9,300 units, making it the largest owner of apartments in the commonwealth, the company said.

The transaction also pushed the company's total portfolio to more than 50,000 units for the first time.

"This is a major acquisition for Morgan Properties," explained Jonathan Morgan, who oversees the company's joint venture operations. The latest purchase, however, was completed without any outside investors. Morgan said the company expected to keep the purchased properties "forever."

It expects to invest some $20 million on upgrades to the portfolio, both to units and common-area amenities.

The properties currently are encumbered by a total of nearly $550 million of Freddie Mac debt that was securitized through FREMF, 2016-KLH1 and 2016-KLH3. The mortgages all pay a coupon of 4.664 percent and mature in 2022 and would face prepayment penalties of roughly 1 percent of their remaining balances if retired before August 2022. They could very well be repaid, or supplemental...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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