Morgan Properties and Olayan America have acquired a portfolio of 48 apartment communities and 14,414 units in 11 states for $1.75 billion.
The joint venture purchased the North Star Portfolio from Star Real Estate Ventures, a joint venture between El-Ad National Properties, LLC and Yellowstone Portfolio Trust.
”The North Star acquisition is the largest multifamily transaction this year and Morgan Properties’ largest deal since acquiring the Morgan Communities portfolio of 95 apartment communities and 17,500 units in 8 states for $1.9 billion in 2019,” said Morgan Properties in a statement.
“The North Star investment is a strategic transaction for Olayan America, and provides access to some of the best multifamily markets in the nation. It speaks to the strength of our partnership with Morgan Properties and our continued confidence in the multifamily sector,” said Erik Horvat, Managing Director and Head of Real Estate at Olayan America.
“This transaction establishes us as the second largest multifamily owner in the country and the nation’s largest private owner. Morgan Properties’ growth has been unprecedented in the multifamily industry. We have acquired $9 billion of assets and over 70,000 units since 2012,” said Jonathan Morgan, President of Morgan Properties JV.
”We are excited to grow our geographic footprint and enter Florida, Texas, Georgia, Louisiana and Michigan. We value our partnership with Olayan and are thrilled to close another monumental transaction together,” he added.
North Star consists of 48 apartment communities and 14,414 units in 11 states including Florida, Texas, Georgia, North Carolina, South Carolina, Louisiana, Michigan, Illinois, Indiana, Ohio and Maryland. The portfolio averages 300 units per property and an average vintage of 1985.
Morgan Properties and Olayan America plan to invest an additional $100 million for enhancements and amenity upgrades to the properties of the North Star portfolio.