KING OF PRUSSIA, PA-Morgan Properties and equity partner, New York-based Dune Real Estate Partners have acquired a 796-unit apartment community in Maryland as a joint venture.
Morgan, based in King of Prussia, is one of the largest and fastest-growing multifamily building owners in the Maryland-Washington, D.C. corridor. The company currently oversees a portfolio of 17 apartment communities and 6400 units.
Chesapeake Glen, located in Glen Burnie, MD, was acquirde from Equity Residential. HFF represented the seller on the disposition.
Mitchell Morgan, Founder and CEO of Morgan Properties, said the company believes Class B apartments are “the right place” to invest right now. Morgan and Dune to renovate and reposition the Maryland complex.
“Chesapeake Glen is a significant acquisition for our company,” he said. “The fundamentals are stronger than ever brought on by the shift from homeownership towards rental apartments. In Class B, we have a captive audience and it generates significant yield.”
Chesapeake Glen Apartments is a garden-style apartment community located in Anne Arundel County. It is situated close to major commuter arteries, including I-95, I-97 and the Baltimore-Washington Parkway. In addition, the location has convenient access to local bus and light rail transportation and is close to Baltimore’s Inner Harbor and Annapolis Waterfront
Economic growth in the area has recently been spurred by the Department of Defense’s Base Realignment and Closure (BRAC) initiative, bringing an estimated 22,000 new jobs to Fort Meade, which is expected to generate $4 billion in annual economic output.
The apartment complex, which features individual HVAC units and washers and dryers and high-speed internet, was built in phases in 1973 and 1977 by the Artery Group. It underwent two interior renovations while owned by Equity Residential..
There is a renovated resident clubhouse, fitness center, outdoor swimming pool, tennis courts, playgrounds and picnic areas. Morgan Properties and Dune plan to make upgrades and complete interior unit renovations to enhance value.
Jonathan Morgan of Morgan Properties said, “These Class B opportunities are 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.”