GMAC Stakes Morgan's PREIT Acquisition

HORSHAM, PA-GMAC Commercial Mortgage Corp., based here, has closed on a mortgage and equity investment for 13 of the 15 multifamily properties that Philadelphia-based Pennsylvania Real Estate Investment Trust is selling to an affiliate of King of Prussia, PA-based Morgan Properties. On completion of the purchase of the two remaining properties, GMACCM will have provided a total of $313 million in debt financing and a $90-million equity investment in the portfolio.

The equity investment comes under the auspices of GMAC Institutional Advisors. Morgan will operate the 15 properties, which are located in seven states and have a total of 6,087 units.

“Timing and certainty of execution were critical to the success of this transaction,” said Tom MacManus, president of GMACCM. “We are extremely excited to begin this new relationship with Morgan Properties.”

Calling it a “complex deal,” Mitchell Morgan, Morgan’s CEO, said, “we turned to GMAC Commercial Mortgage because of their familiarity with the loans and their ability to provide the debt and equity, as well as the defeasance through their Newman & Associates affiliate.” Newman, a division of GMAC, is a financial services firm based in Leesburg, FL.

The PREIT transaction is Morgan’s sixth and largest portfolio acquisition.