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Morgan Properties’ Jason Morgan: “No Better Asset Class” Than Workforce Multifamily
Among the secrets of success in commercial real estate investment is finding a vehicle that works. In the case of Morgan Properties, it’s workforce housing. The King of Prussia, PA-based investor became Pennsylvania’s largest multifamily owner and operator earlier this year, with a deal that brought its portfolio over the 50,000-unit line, including 9,000 in Pennsylvania alone.
Principal Jason Morgan will be on hand to discuss what has made his company’s strategy successful at this year’s Connect National Investment & Finance in New York City, scheduled for Oct. 23.
Ahead of the Oct. 23 event, Morgan shared some insights into his company’s modus operandi. “Morgan Properties’ investment approach primarily focuses on Class B/workforce housing across the East Coast,” he told Connect Media. “We target properties in high-barrier-to-entry markets where we are able to buy at a significant discount to replacement cost.”
The company believes that Class B multifamily properties generate higher returns and are more resilient to economic downturns than newer-vintage Class A assets that cater to “renters by choice,” Morgan said.
“During the Great Recession, our portfolio was incredibly resilient—our occupancy never dropped below 93% and our NOI stayed flat in its worst year,” said Morgan. “The results speak for themselves. After a 10+ year cycle, there is no better asset class to invest in than Class B multifamily, given its defensive nature and superior risk-adjusted returns.”
The company has been among the most active multifamily investors in the industry, having completed over $5 billion in acquisition volume since 2012, and with 2019 shaping up to be “one of our biggest years to date,” Morgan said.
From a capital markets standpoint, he added, “we have longstanding relationships with both government lending agencies, Freddie Mac and Fannie Mae, and have completed close to $5 billion in financings since 2013—making us one of their largest borrowers.”
Pictured, above: Lantern Bryn Mawr, a recent addition to the Morgan Properties portfolio. Below right: Jason Morgan.
Connect National Investment & Finance is coming to New York on Oct. 23. For more information, or to register, click here.
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