Unlike many other commercial real estate firms that focus exclusively on either Class-A projects or distressed-type properties, King of Prussia-based Morgan Properties has built its success through the Class-B multifamily segment – while utilizing technology to ensure positive returns, writes Erik Sherman for GlobeSt.com.
The family-owned company has around 96,000 units in approximately 20 states, said area vice president Sean O’Neill. In his view, Class-A takes up the top third of markets, Class-C takes up the bottom quarter, and Class-B covers the middle 42 percent.
“Class B is an underserved segment at a time where housing need is very high,” said O’Neill. “The economy is strong, the job market is strong, but there’s a lot of pressure on pricing in single-family homes and again not a lot of supply. That’s going to be in our favor as well. Class B is meat and potatoes, but it will certainly fill you up.”
The firm has been on an acquisition spree since 2019, and while it did pick up some Class-A, the majority of its new inventory is Class-B.
“We’re in a lot of secondary markets and that’s where the opportunities are,” said O’Neill.
Read more about King of Prussia’s Morgan Properties at GlobeSt.com.
