KING OF PRUSSIA, PA – Morgan Properties, a real estate investment and management company, announced today it has acquired its fourth “B-Piece” from Freddie Mac through its K-Series Program. The issuance, K-W07, is supported by a pool of 36 multifamily mortgage loans. Morgan Properties acquired K-W06 in September.
“Since launching our credit platform in September 2017, we have been extremely active closing on four K-Series Deals across $3.2 billion in loans,” said Jason Morgan, Senior Vice President of Acquisitions and Investment Management at Morgan Properties. “Looking ahead to the new year, we’ll continue to invest in multifamily credit through Freddie Mac’s K-Series Program and expand upon both our debt and equity businesses to uphold our position as one of the fastest-growing companies in the country.”
At closing, the total loan balance represented by the K-W07 Multifamily Mortgage Pass-Through Certificates was approximately $683 million and the B-Piece that Morgan Properties acquired had a face amount of approximately $51 million. K-W07 is represented by a well-diversified group of multifamily properties located across 20 states including: Maryland, Massachusetts, Texas, Washington, and Virginia (in order of geographic concentration), among other states. The loan metrics underlying the Pass-Through Certificates included: LTV of 68.5 percent at closing, which is anticipated to amortize down to 63.8 percent by maturity; and a weighted average net cash flow debt service coverage ratio of 1.47x.
Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities. K-Series Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds, such as the “B-Piece.” K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.
About Morgan Properties: Established in 1985 by Mitchell Morgan, Morgan Properties is a national real estate investment and management company headquartered in King of Prussia, Pennsylvania. Morgan Properties and its affiliate, Morgan Properties JV own and manage a multifamily portfolio comprised of 155 apartment communities and over 45,000 units located in 11 states, primarily in the Mid-Atlantic and Northeast Region. Morgan Properties is currently the 20th largest apartment owner in the country. The Company prides itself on its quick decision-making ability, strong capital relationships and operational expertise.