New owner of Mark Center plans to renovate garden apartment communities

The Hillwood apartments at the Mark Center

Morgan Properties, a fast-growing real estate company based in suburban Philadelphia, has acquired the Mark Center portfolio in Alexandria’s West End for $509 million, the company announced Aug. 30.

The Mark Center consists of 2,664 apartment units and a 63,320-square-foot retail center on more than 150 acres.

The seller, JBG Cos., had planned to develop a mixed-use project on part of that property after the City of Alexandria had approved a redevelopment plan in 2012 allowing higher density along the Beauregard Street corridor. But then JBG merged with Vornado Realty Trust and began selling off its properties.

According to a press release from Morgan Properties, the approval of a redevelopment plan gives the company “tremendous optionality over the long term to nearly triple the density” of the existing garden-style apartments at the Mark Center.

Morgan Properties plans to consolidate the six apartment communities – Hillwood, Stroneridge, Meadow Creek, Lynbrook, Brookdale, and Willow Run – “into four large apartment communities to maximize operational efficiencies and execute a $35 million value-add repositioning plan to enhance the value of each property.”

The company plans to renovate the apartment interiors; install more than 2,200 washers and dryers; upgrade kitchens; improve curb appeal; and renovate the Pavilion clubhouse with a state-of-the-art fitness center, business center, movie theater, club room, putting green, and dog park.

Morgan Properties doesn’t say whether it plans any changes at the Shops at Mark Center, a retail center with neighborhood-serving stores, including a grocery store, CVS, Starbucks, and SunTrust Bank.

Morgan Properties owns and manages more than 40,000 apartment units in 10 states, including 21,500 in the Washington, D.C., region.

“The Mark Center acquisition is a major milestone for Morgan Properties, as it marks our second largest transaction in the company’s history and solidifies our position as one of the largest multifamily owners in the greater Washington, D.C., metro area,” said Jonathan Morgan, president of Morgan Properties JV Management.

“We felt this deal was a once-in-a-lifetime investment opportunity to acquire significant size and scale to generate operational efficiencies and enhance the value of the assets,” Morgan said. “We are on track to acquire over $1 billion of real estate in 2017 and look forward to continuing to grow our portfolio.”