KING OF PRUSSIA, PA - Morgan Properties and its equity partner, New York-based Dune Real Estate Partners LP have formed a joint venture partnership to acquire Chesapeake Glen, a 796-unit multifamily apartment community located in Glen Burnie, MD from Equity Residential. HFF represented the seller on the disposition. Morgan Properties is one of the largest and fastest-growing multifamily owners in the Maryland-DC Corridor, where they currently oversee a portfolio of 17 apartment communities and 6,400 units.
Mitchell Morgan, Founder and CEO of Morgan Properties, said, “Chesapeake Glen is a significant acquisition for our company. We are excited to collaborate with Dune and feel that we have the ability to add value to the asset. It’s a great time to invest in the multifamily sector…the wind is at our back. The fundamentals are stronger than ever brought on by the shift from homeownership towards rental apartments. We feel that Class B is the right place to invest now since we have a captive audience and it generates significant yield.”
Chesapeake Glen Apartments is a high-quality, garden-style apartment community located in Anne Arundel County. The apartment community benefits from having excellent access throughout the Baltimore-Washington metro area due to its close proximity to the major commuter arteries that includes I-95, I-97 and the Baltimore-Washington Parkway. The property’s location offers convenient access to local bus and light rail transportation and is within minutes of Baltimore’s Inner Harbor and Annapolis Waterfront. Chesapeake Glen also benefits from the tremendous economic growth recently spurred by the Department of Defense’s Base Realignment and Closure (BRAC) initiative, bringing an estimated 22,000 new jobs to Fort Meade that is expected to generate $4 billion in annual economic output.
Originally built in phases in 1973 and 1977 by the Artery Group, Chesapeake Glen previously underwent two interior renovation phases from 2006-2008 and from 2010-2011 by Equity Residential. The property offers attractive in-unit features such as individually-controlled HVAC units, washers and dryers, upgraded kitchens, balconies or patios, high-speed internet and nine spacious floor plans. It also has one of the most comprehensive amenity packages in the submarket featuring a fully renovated resident clubhouse, a state of the art fitness center, a resort-style outdoor swimming pool, tennis courts, playgrounds and picnic areas. Morgan Properties and Dune plan to execute a repositioning strategy that will address capital needs and complete interior unit renovations to enhance value.
Jonathan Morgan, Director of Acquisitions at Morgan Properties, said, “We are thrilled to be partnering with Dune and feel that Chesapeake Glen is the perfect fit for our portfolio. As a best-in-class multifamily owner and operator, Morgan Properties has the operational expertise, established value-enhancement capabilities and strong market presence in the Maryland-DC Corridor to capitalize on the operational synergies and economies of scale. We target off-market opportunities to acquire large one-off transactions and portfolios of Class B apartments that require substantial equity commitments to limit competition from the local buyers and private owners. These Class B opportunities are also currently being overlooked by institutional buyers given the continued flight to quality trend so we believe that our investment strategy capitalizes on the inefficient pricing that exists in the market. We look forward to implementing our repositioning strategy and enhancing our residents’ living experience with our world-class professional management team. We are very excited about the potential of improving this asset and opportunities going forward.”
Source: Morgan Properties / #Multifamily #Apartments