Tuesday, October 29, 2019
Morgan Properties Buys 18,000 Unit Portfolio from Embattled Firm
by John Jordan Globest.com
Locally-based Morgan Properties has acquired nearly 80 apartment communities encompassing approximately 15,000 units across eight states.
Morgan Properties acquired the portfolio from Pittsford, NY-based Morgan Communities, which has no relation to the Pennsylvania-based company.
Morgan Communities’ CEO Robert Morgan, his son Todd and two other Morgan Communities’ employees were indicted by a federal grand jury in May on wire fraud and bank fraud charges in connection with an alleged half-billion-dollar mortgage fraud scheme.
No financial details of the purchase transaction by Morgan Properties were announced. The transaction increases Morgan Properties’ total portfolio to more than 75,000 units in 15 states, making it one of the five largest multifamily owners in the US.
Since 2012, the firm has acquired more than $7 billion in total acquisition volume comprised of 50,000 units. Following this transaction, Morgan Properties has also agreed to acquire an additional 3,000 units from Morgan Communities.
The geographic concentration of the acquired portfolio is primarily in upstate New York markets, including Rochester, Buffalo, Syracuse, and Albany, and Pennsylvania submarkets that include Pittsburgh and Harrisburg. The portfolio also consists of assets in Memphis; Chicago, Huntsville, AL and Cleveland, which all represent new markets for Morgan Properties.
The firm notes that the deal solidifies Morgan Properties’ portfolio concentration in the Mid-Atlantic and Northeast regions and its position as the largest multifamily owner/operator in the states of Pennsylvania, Maryland and New York.
Jason Morgan, principal at Morgan Properties, says the firm assumed property management across the acquired portfolio in July and has transitioned more than 750 employees to its team. Morgan Properties now employs approximately 2,000 workers.
www.omegare.com
Locally-based Morgan Properties has acquired nearly 80 apartment communities encompassing approximately 15,000 units across eight states.
Morgan Properties acquired the portfolio from Pittsford, NY-based Morgan Communities, which has no relation to the Pennsylvania-based company.
Morgan Communities’ CEO Robert Morgan, his son Todd and two other Morgan Communities’ employees were indicted by a federal grand jury in May on wire fraud and bank fraud charges in connection with an alleged half-billion-dollar mortgage fraud scheme.
No financial details of the purchase transaction by Morgan Properties were announced. The transaction increases Morgan Properties’ total portfolio to more than 75,000 units in 15 states, making it one of the five largest multifamily owners in the US.
Since 2012, the firm has acquired more than $7 billion in total acquisition volume comprised of 50,000 units. Following this transaction, Morgan Properties has also agreed to acquire an additional 3,000 units from Morgan Communities.
The geographic concentration of the acquired portfolio is primarily in upstate New York markets, including Rochester, Buffalo, Syracuse, and Albany, and Pennsylvania submarkets that include Pittsburgh and Harrisburg. The portfolio also consists of assets in Memphis; Chicago, Huntsville, AL and Cleveland, which all represent new markets for Morgan Properties.
The firm notes that the deal solidifies Morgan Properties’ portfolio concentration in the Mid-Atlantic and Northeast regions and its position as the largest multifamily owner/operator in the states of Pennsylvania, Maryland and New York.
Jason Morgan, principal at Morgan Properties, says the firm assumed property management across the acquired portfolio in July and has transitioned more than 750 employees to its team. Morgan Properties now employs approximately 2,000 workers.
www.omegare.com
Monday, October 28, 2019
Amazon Continues Philadelphia Expansion
Online retail giant Amazon has signed a long-term lease for 165,000 square feet at Gateway Business Center in Philadelphia.
Amazon plans to move in to the single tenant industrial building at 7575 Brewster Ave. in the second quarter of 2020. Built in 1981 on 14.6 acres, the single-story facility includes 20,000 square feet of office space, 20 loading docks, one drive-in bay and a 20-foot clear ceiling height.
The space is currently used as a distribution center by Veritiv Corp., a logistics company headquartered in Atlanta. The building is located two miles from Philadelphia International Airport.
www.omegare.com
Amazon plans to move in to the single tenant industrial building at 7575 Brewster Ave. in the second quarter of 2020. Built in 1981 on 14.6 acres, the single-story facility includes 20,000 square feet of office space, 20 loading docks, one drive-in bay and a 20-foot clear ceiling height.
The space is currently used as a distribution center by Veritiv Corp., a logistics company headquartered in Atlanta. The building is located two miles from Philadelphia International Airport.
www.omegare.com
Prologis to Buy Liberty Property Trust for $12.6B
by John Jordan Globest.com
Prologis announced on Sunday it had struck a deal to acquire locally-based Liberty Property Trust for $12.6 billion.
The deal is reflective of the high demand for industrial warehouses, particularly those that are located in high-demand, last mile delivery locations—indeed, the transaction will deepen San Francisco-based Prologis’ presence in target markets such as Lehigh Valley, Chicago, Houston, Central PA, New Jersey and Southern California. The assets trading include a 107 million square foot logistics operating portfolio, 87% of which overlaps with key markets; 5.1 million square feet of logistics development in progress; 1,684 acres of land for future logistics development with build-out potential of 19.7 million square feet and 4.9 million-square-foot office operating and development portfolio.
As part of the deal, Prologis will sell off $3.5 billion of assets. This includes $2.8 billion in non-strategic logistics properties and $700 million of office properties.
The board of directors of Prologis and the board of trustees of Liberty have each unanimously approved the transaction.
The deal is expected to close in the first quarter of 2020.
The high water mark for these deals was closed by Blackstone in its acquisition of GLP’s US warehouse portfolio for $18.7 billion. Prologis, much like Blackstone, is also in acquisition mode for industrial assets. In July, the REIT agreed to buy Black Creek Group’s investment platform Industrial Property Trust in an all-cash transaction of $3.99 billion. This transaction expanded its position in Southern California, the San Francisco Bay Area, Chicago, Atlanta, Dallas, Seattle and New Jersey.
Prologis and Liberty Property Trust say the deal is expected to create immediate cost synergies of $120 million from corporate general and administrative cost savings, operating leverage, lower interest expense and lease adjustments. Initially, this transaction is expected to increase annual core funds from operations per share by $0.10-$0.12. Upon stabilization of the acquired development assets, completion of the planned non-strategic asset sales and redeployment of the related proceeds, annual stabilized Core FFO per share is forecasted to increase by an additional $0.04 per share for a total of $0.14-$0.16.
Further, there are future synergies with the potential to generate $60 million in annual savings, including $10 million from revenue synergies and $50 million from incremental development value creation, the companies add.
Under the terms of the agreement, Liberty shareholders will receive 0.675x of a Prologis share for each Liberty share they own. BofA Securities and Morgan Stanley are acting as financial advisors and Wachtell, Lipton, Rosen & Katz is serving as legal advisor to Prologis. Goldman Sachs and Citigroup are acting as financial advisors and Morgan, Lewis and Bockius LLP is serving as legal advisor to Liberty.
www.omegare.com
Prologis announced on Sunday it had struck a deal to acquire locally-based Liberty Property Trust for $12.6 billion.
The deal is reflective of the high demand for industrial warehouses, particularly those that are located in high-demand, last mile delivery locations—indeed, the transaction will deepen San Francisco-based Prologis’ presence in target markets such as Lehigh Valley, Chicago, Houston, Central PA, New Jersey and Southern California. The assets trading include a 107 million square foot logistics operating portfolio, 87% of which overlaps with key markets; 5.1 million square feet of logistics development in progress; 1,684 acres of land for future logistics development with build-out potential of 19.7 million square feet and 4.9 million-square-foot office operating and development portfolio.
As part of the deal, Prologis will sell off $3.5 billion of assets. This includes $2.8 billion in non-strategic logistics properties and $700 million of office properties.
The board of directors of Prologis and the board of trustees of Liberty have each unanimously approved the transaction.
The deal is expected to close in the first quarter of 2020.
The high water mark for these deals was closed by Blackstone in its acquisition of GLP’s US warehouse portfolio for $18.7 billion. Prologis, much like Blackstone, is also in acquisition mode for industrial assets. In July, the REIT agreed to buy Black Creek Group’s investment platform Industrial Property Trust in an all-cash transaction of $3.99 billion. This transaction expanded its position in Southern California, the San Francisco Bay Area, Chicago, Atlanta, Dallas, Seattle and New Jersey.
Prologis and Liberty Property Trust say the deal is expected to create immediate cost synergies of $120 million from corporate general and administrative cost savings, operating leverage, lower interest expense and lease adjustments. Initially, this transaction is expected to increase annual core funds from operations per share by $0.10-$0.12. Upon stabilization of the acquired development assets, completion of the planned non-strategic asset sales and redeployment of the related proceeds, annual stabilized Core FFO per share is forecasted to increase by an additional $0.04 per share for a total of $0.14-$0.16.
Further, there are future synergies with the potential to generate $60 million in annual savings, including $10 million from revenue synergies and $50 million from incremental development value creation, the companies add.
Under the terms of the agreement, Liberty shareholders will receive 0.675x of a Prologis share for each Liberty share they own. BofA Securities and Morgan Stanley are acting as financial advisors and Wachtell, Lipton, Rosen & Katz is serving as legal advisor to Prologis. Goldman Sachs and Citigroup are acting as financial advisors and Morgan, Lewis and Bockius LLP is serving as legal advisor to Liberty.
www.omegare.com
Saturday, October 26, 2019
Phoenix Nexus Enterprises Affiliate Buys One Summit Square for New Headquarters
An affiliate of Phoenix Nexus Enterprises has purchased One Summit Square in Langhorne, Pennsylvania, from Country Life Insurance Co.
The 67,219-square-foot office building at 1717 Newtown Langhorne Road was completed in 1985. Major tenants in the four-story facility include Comcast, Ricoh and US Congressman Brian Fitzpatrick.
The buyer, a locally-based operator of quick-serve restaurants, plans to relocate its headquarters to the building, occupying 13,000 square feet.
www.omegare.com
The 67,219-square-foot office building at 1717 Newtown Langhorne Road was completed in 1985. Major tenants in the four-story facility include Comcast, Ricoh and US Congressman Brian Fitzpatrick.
The buyer, a locally-based operator of quick-serve restaurants, plans to relocate its headquarters to the building, occupying 13,000 square feet.
www.omegare.com
Thursday, October 24, 2019
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