Morgan Properties Acquires a “B-Piece” on $666 Million K-Series Securitization
Sep. 05, 2018
KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--Sep 5, 2018--Morgan Properties, a real estate investment and management company, announced today it has acquired a “B-Piece” from Freddie Mac through its K-Series Program. The issuance, K-W06, is supported by a pool of 45 multifamily mortgage loans. This is the third recent K-Series Deal involving Morgan Properties, following its K-75 acquisition in April.
At closing, the total loan balance represented by the K-W06 Multifamily Mortgage Pass-Through Certificates was approximately $666 million and the B-Piece that Morgan Properties acquired had a face amount of approximately $50 million. K-W06 is represented by a well-diversified group of multifamily properties located across 21 states including: Texas, Pennsylvania, Virginia, Florida, Georgia, Nevada, and South Carolina (in order of geographic concentration), among other states. The loan metrics underlying the Pass-Through Certificates included: LTV of 71.5 percent at closing, which is anticipated to amortize down to 64.5 percent by maturity; and a weighted average net cash flow debt service coverage ratio of 1.34x.
“We have continued to expand our position in multifamily credit and are proud to announce the closing of our third K-Series Deal in the past 11 months, an important milestone for the company,” said Jason Morgan, Senior Vice President of Acquisitions and Investment Management at Morgan Properties. “We look forward to continuing to grow our K-Series “B-Piece” portfolio and invest in multifamily credit.”
Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities. K-Series Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds, such as the “B-Piece.” K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.
About Morgan Properties
Established in 1985 by Mitchell Morgan, Morgan Properties is a national real estate investment and management company headquartered in King of Prussia, Pennsylvania. Morgan Properties and its affiliate, Morgan Properties JV own and manage a multifamily portfolio comprised of 150 apartment communities and over 45,000 units located in ten states, primarily in the Mid-Atlantic and Northeast Region. Morgan Properties is currently the 20th largest apartment owner in the country. The Company prides itself on its quick decision-making ability, strong capital relationships and operational expertise. Learn more at www.morganproperties.com.
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CONTACT: Morgan Properties
Leigh Minnier, 610-228-2108
Jason Morgan, 610-945-1560
KEYWORD: UNITED STATES NORTH AMERICA PENNSYLVANIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES REIT BANKING FINANCE CONSTRUCTION & PROPERTY COMMERCIAL BUILDING & REAL ESTATE RESIDENTIAL BUILDING & REAL ESTATE
SOURCE: Morgan Properties
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PUB: 09/05/2018 10:53 AM/DISC: 09/05/2018 10:53 AM