Morgan-Olayan JV Acquires 791-Unit Complex

REISTERSTOWN, MD—A joint venture of King of Prussia, PA-based Morgan Properties and The Olayan Group of Saudi Arabia has acquired the 791-unit The Preserve at Owings Crossing rental apartment community here.

No financial terms of the transaction were released although the joint venture partners state in an announcement that the deal marks the second acquisition that Morgan Properties has purchased in a joint venture with Olayan this year. Morgan Properties and Olayan have acquired approximately $400 million of new acquisitions together in the Mid-Atlantic Region in 2014. Earlier this year, the Morgan Properties-Olayan joint venture partnership acquired the Mid-Atlantic portfolio from Berkshire Property Advisors, which was comprised of nine assets and 2,671 units located in Maryland and Virginia.

Morgan Properties also owns and manages Chartleytowne Apartments, a 692-unit apartment community in Reisterstown.

The Preserve is a Class B garden-style apartment community that was originally built in phases in 1965 and 1973. The Preserve offers an amenities package that includes a full-service leasing office with a fitness center, a swimming pool, tennis and volleyball court, playground areas and a dog park. Morgan Properties and Olayan plan to implement a value-add repositioning strategy that will address capital needs and complete an interior unit renovation plan to enhance the value of the asset, the companies state.

Specifically, the firms note that The Preserve is ideally positioned for value-add renovations due to the community's original interiors and the significant rental spread between both Class A product in the area and the property's direct competitors. Morgan Properties will implement a value-add repositioning strategy consisting of kitchen and bath renovations and in-unit washer and dryer installations. They will be completing top-of-line amenity upgrades including a renovated fitness center.

Mitchell Morgan, founder and CEO of Morgan Properties, says, “The Preserve is an exciting acquisition for our organization. We are pleased to continue doing deals with our partner Olayan. Our Maryland team will add tremendous value to the asset. Given our local market knowledge and operational expertise, Morgan Properties is the right operator to efficiently manage and enhance the value of the asset. We are excited to collaborate with Olayan and our team looks forward to owning the property and executing our business plan.”