Morgan Properties closed a $1.2 billion series of loans to refinance a portion of its multifamily portfolio encompassing 73 apartment communities containing 13,799 units. Berkadia Commercial Mortgage originated the financing.
The properties are located in New York, New Jersey, Pennsylvania, Delaware and Maryland and contain a mix of garden, mid-rise and high-rise apartment complexes. The average occupancy for the portfolio is 95 percent. Morgan Properties acquired most of these assets as part of its $1.9 billion acquisition of the Kushner portfolio in 2007.
Seventy one of the 73 communities are eligible for securitization through Freddie Mac’s K Deal Program.
Freddie Mac provided Morgan Properties with 10-year financing with a fixed sub-4 percent interest rate, a partial interest only period and a 30-year amortization schedule. The facility is made up of individual property loans that are not cross collateralized.
“This transaction is the largest refinancing in the history of Morgan Properties dating back to our company’s inception in 1985,” said Mitchell Morgan, founder, president and CEO of Morgan Properties, in a statement. “It represents slightly more than half of our wholly owned portfolio. We saw this as an unprecedented time to refinance our existing portfolio, by locking in attractive long-term financing at historically low interest rates. Closing the refinancing was a collaborative effort. We are excited to cultivate our longstanding relationship with Freddie Mac and Berkadia.”