Wednesday, February 24, 2021

Morgan Properties makes $1.75B acquisition of apartment portfolio

 Natalie Kostelni Reporter Philadelphia Business Journal

Morgan Properties has paid $1.75 billion for a portfolio of 48 apartment communities, adding 14,414 units across 11 states.

The King of Prussia company bought what is referred to as the North Star Portfolio in partnership with Olayan America, which is part of Olayan Group, a family-owned international investment firm. The Saudi Arabian conglomerate has been valued at more than $10 billion by Bloomberg.

Plans involve investing another $100 million in upgrades to the properties.

The Class B portfolio was sold by Star Real Estate Ventures, a joint venture between El-Ad National Properties, and Yellowstone Portfolio Trust. As a result of the transaction, Morgan enters five new states including Florida, Texas, Georgia, Louisiana and Michigan. Other properties in the portfolio are in Illinois, Maryland, Ohio, South Carolina, North Carolina and Indiana.

The largest concentration of apartments is in suburban Baltimore, with 2,566.

Full story:

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Dermody To Develop 1.2 Million-Square-Foot Logistics Park in South Jersey

by Linda Moss Costar

Looking to take advantage of the still-rising demand for industrial space, Dermody Properties is slated to begin construction this spring on a roughly 1.2 million-square-foot logistics park on a 154-acre site in South Jersey.

Dermody, based in Reno, Nevada, plans three buildings at its LogistiCenter at Woolwich development, which is located in Woolwich Township in Gloucester County. When completed, the properties will have 262,200 square feet, 552,585 square feet and 336,700 square feet available for leasing. Their addresses are 2057 Route 322, 2120 Route 322 and 2062 Route 322, respectively.

Demand for industrial space had been skyrocketing, driven by e-commerce, in New Jersey even before the pandemic last year. Stay-at-home orders and store closures gave online buying another boost, and the need for logistics space exploded. But there is scant vacant space available to build such projects in North Jersey, so distribution and warehouses are being constructed farther south in the Garden State.

The Class A, state-of-the-art facilities in Woolwich will each feature a 36- to 40-foot clear height, build-to-suit office space, 50 to 110 dock-high doors, drive-in doors and ample trailer and car parking. LogistiCenter at Woolwich is located at the intersection of U.S. Route 322 and Locke Avenue, and Dermody said it will make significant improvements to that junction as it develops its new park.

“Southern New Jersey remains a valuable alternative for many customers looking to be along Interstate 95, and the location offers tremendous access to New York City, Philadelphia, Baltimore and Washington, D.C., all within a two-hour drive via major arterials,” Gene Preston, Dermody East region partner, said in a statement. “The market continues to attract top-tier companies looking for Class A warehouse space that has become too rare to find or too expensive in central and Northern New Jersey.”

There is a good balance of residents with manufacturing or distribution experience, recent high school graduates looking for entry-level roles and college graduates looking for advanced or leadership roles all within a 30-minute drive of the Woolwich location, according to a labor study done by CBRE in conjunction with Dermody.

The real estate firm isn’t a stranger to South Jersey. It developed the LogistiCenter at Logan, a Class A business park with more than 5.5 million square feet of warehouse, distribution and manufacturing space that’s located in Logan Township.

Founded in 1960, Dermody has invested in more than 89 million square feet of industrial space.

 J.G. Petrucci Co. is also building Port Logistics Center at Logan, Building A, a 1.1 million-square-foot speculative project located in a four-building industrial campus currently under development. Construction of the logistics center in Logan Township, which will have 1.9 million square feet when completed, has already begun.