With the rapid development of D.C. apartments preventing owners of new buildings from raising rents, outside investors looking to buy into D.C.’s multifamily market are increasingly attracted to suburban, Class-B communities.
Morgan Properties owned about 4,000 units in the D.C.-Maryland area in 2012. Following a rapid acquisition spree over the last five years, it now has six times that. With a 24,000-unit footprint, the D.C. region now makes up more than half of the Philadelphia-based investor’s portfolio.
That growth has been highlighted this year by Morgan Properties largest-ever acquisition. In August it bought Alexandria’s Mark Center portfolio from JBG for $509M.
“We’ve been rapidly scaling up throughout the Maryland and D.C. corridor, it only made sense to be on the other side of the Beltway to have a stronghold in the D.C. market,” Morgan Properties President Jonathan Morgan said. “Northern Virginia has been a market we’ve highly coveted. It just depended on finding the right opportunity to strike.”
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