Two years ago, King of Prussia-based Morgan Properties decided to dive headfirst into B-piece investing which has higher risks but also bigger rewards, writes Matt Grossman for the Commercial Observer.
The company currently manages a portfolio of 75,000 units in 15 states, making it the fifth largest owner in the nation. The company has been an active multifamily investor for the last eight years, but its investments have intensified since launching its credit platform in September 2017.
“We have closed on nine K-series B-pieces across $8.5 billion of total loans, which carry a face value of roughly $637 million,” said Jason Morgan, Principal at Morgan Properties. “We’ve probably been one of the more active Freddie Mac K-investors over the last 24 months.”
The company entered the B-piece space as it perfectly aligns with its portfolio, added Morgan.
“Being a multifamily expert, buying across the capital stack just makes sense,” he said.
And to ensure the best decisions are made, the company completes an extensive due diligence of each asset in a specific pool.
“We visit each and every property, and we take an active role in pool composition,” said Morgan.
Read more about Morgan Properties at the Commercial Observer by clicking here.