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Morgan Properties, Olayan America Acquire 14,414-Unit Apartment Portfolio Across Midwest, Southeast for $1.7B

KING OF PRUSSIA, PA. — Morgan Properties and Olayan America have acquired a portfolio of 48 apartment communities totaling 14,414 units in 11 states for $1.7 billion. STAR Real Estate Ventures, a joint venture between El-Ad National Properties LLC and Yellowstone Portfolio Trust, was the seller.

The portfolio, named the North Star Portfolio, consists of Class B assets in Florida, Texas, Georgia, North Carolina, South Carolina, Louisiana, Michigan, Illinois, Indiana, Ohio and Maryland. On average, the communities total 300 units each and date to 1985.

“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,” says Jonathan Morgan, president of Morgan Properties.

“The North Star investment speaks to the strength of our partnership with Morgan Properties and our continued confidence in the multifamily sector,” says Erik Horvat, managing director and head of real estate at Olayan America.

The buyers plan to invest an additional $100 million for enhancements and amenity upgrades at the properties.

With the North Star acquisition, Morgan and Olayan entered five new states, including Florida, Texas, Georgia, Louisiana and Michigan. As a result of the purchase, Morgan hired 400 new employees, creating two area vice president positions, 14 regional management positions and 70 corporate positions. Morgan has also decided to open a regional office in Boca Raton to better serve its expansion in the Southeast.

Established in 1985 and headquartered in King of Prussia, Morgan Properties and its affiliates currently own and manage a multifamily portfolio comprised of 357 communities and over 90,000 units in 20 states. Morgan is the nation’s largest private multifamily owner, according to the company.

Olayan America is a division of The Olayan Group, a private company founded in 1957 with a real estate portfolio that includes commercial, residential and mixed-use properties.

Since 2014, the two companies have closed 13 transactions together, representing $4.3 billion in total acquisition volume.

— Kristin Hiller

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