Mitchell Morgan's Morgan Properties, the King of Prussia-based apartment landlord, says it has acquired Silk Factory Lofts, a 116-unit complex in central Lansdale, from lender GE Capital after developers fell behind on their loan.
The deal makes Morgan a dominant rental landlord in Lansdale, with more than 1,000 apartments in the borough, whose total population is 16,000. Morgan says it controls a total of 30,000 apartments in New Jersey and nearby states.
Accoding to records at the Montgomery County sheriff's office, the property was turned over to the buyer, which had previously managed Silk Factory in partnership with CBRE Real Estate, after no other would-be owner agreed to pay the $19 million "upside price" the lender posted to cover costs and part of the $28 million total outstanding debt on the properties at 200 South Line and 152 Prospect.
Silk Factory was built 1922 as Interstate Hosiery and listed on the National Register of Historic Places, according to a statement from Morgan vice president Peggy Hale.
Morgan says this is the company's fourth acquisition this year. In August, Morgan said it paid $27.4 million, or $46,000 per unit, for another "distressed" property, 588-unit Garden View Apartments in Randallstown, Md., near Baltimore. Morgan is looking for other "distressed debt" apartment complexes in the New York-DC corridor, acquisitions director Jonathan Morgan said in a statement. The company plans "value-added repositioning" -- improvements and rent increases.
Founder Mitchell Morgan is chairman of the Temple University board's building committee and a leading Pennsylania donor to national Republican candidates.