KING OF PRUSSIA, PA - Morgan Properties and its equity partner, New York-based DRA Advisors LLC have formed a joint venture partnership to acquire Northampton Apartments, a 620-unit multifamily apartment community located in Largo, Maryland. Jones Lang LaSalle represented the seller, Equity Residential on the disposition. Morgan Properties is currently one of the largest and fastest-growing multifamily owners and operators in the Maryland-Washington, DC Corridor, where they currently oversee a multifamily portfolio of 17 apartment communities, comprised of over 7,000 units.
Mitchell Morgan, Founder and CEO of Morgan Properties, said, “Northampton is an exciting acquisition for our company. We look forward to establishing a JV Partnership with DRA. David Luski and I have had a longstanding relationship in the real estate industry. We felt that it was a compelling acquisition opportunity to pursue together. We feel that our Maryland team will add tremendous value to the asset. Northampton is a perfect fit for our existing portfolio in the Maryland-DC Corridor. Given our strong market presence and the operational synergies created, we can efficiently manage the asset and generate significant yield. We are looking forward to owning the asset and executing our repositioning strategy.”
Northampton Apartments is a high quality, 620-unit garden community located in Largo, Maryland. Originally built in two phases in 1977 and 1987 by the Artery Group, Northampton offers attractive in-unit features, such as individually-controlled HVAC units, washers & dryers and kitchens with breakfast bars. The property has been well maintained by EQR and has a superb market location with excellent visibility and access to major employers. The property is ideally situated minutes from the Capital Beltway (I-495) and less than a five minute drive to the Largo Town Center Metro Station providing residents with direct access to the robust employment base of Prince George’s County and downtown Washington, D.C.
Northampton Apartments also offers residents one of the most comprehensive amenity packages in the region with tennis courts, a large swimming pool and two playground areas. Additionally, the community’s well designed floor plans offer spacious units and large closets conducive to implementing a value-add renovation plan through interior upgrades. Morgan and DRA plan to execute a value-add repositioning strategy that will address capital needs and complete a renovation plan to enhance the value of the asset.
Jonathan Morgan, Director of Acquisitions and Capital Markets at Morgan Properties, said, “We are excited to work with DRA on the acquisition of Northampton Apartments. Having performed as the buyer in our Chesapeake Glen acquisition, we were able to utilize our existing relationship with EQR and JLL to acquire Northampton in an off-market transaction. Timing was critical for this investment opportunity. Morgan and DRA were able to move quickly to execute, ensuring a smooth transition in consummating this transaction. We feel that we have the ability to capture an additional rent premium in the market without competing directly with Class A assets. By implementing our value-add repositioning strategy, Morgan Properties will enhance the value of the asset by maximizing cash flow.”