Real estate mogul Mitchell Morgan, the founder of Morgan Properties, has found success by investing in older apartment buildings in midsize cities across the United States. With over 95,000 units in 19 states, Morgan Properties now ranks as the third-largest owner of apartments in the country. This success has landed Morgan on the Forbes 400 list of the richest Americans, with a net worth of $5.5 billion.
Morgan’s strategy involves acquiring older properties in less-fashionable places such as Reading, Pennsylvania, and Rochester, New York, and quickly renovating them to increase rents. By focusing on what’s known as ‘Class B’ apartments, which target tenants with lower incomes, Morgan has been able to provide stable cash flow and weather economic downturns better than luxury properties.
Despite facing some legal challenges, such as lawsuits from tenants alleging refusal of accommodation requests and bed bug infestations, Morgan Properties claims to have a dedicated customer service team to address renters’ complaints. With a family-owned touch and a frugal approach to debt and partnerships, Morgan has been able to thrive in smaller markets where larger institutional investors may struggle.
With a strong focus on workforce housing and providing quality apartments at affordable prices, Morgan Properties has continued to expand its portfolio and invest in new opportunities. The firm spends roughly $300 million annually on renovations across its properties, emphasizing a value-add approach to improve the living experience for tenants.
Morgan’s sons, Jason and Jonathan, have joined the family business and played pivotal roles in its growth and diversification. Jason oversees the firm’s debt investments and credit, while Jonathan focuses on joint ventures and acquisitions. Together, the family has built a successful real estate empire that continues to thrive by staying true to its core strategy and values.
Looking ahead, Morgan remains optimistic about the future and sees ongoing opportunities for growth and expansion. With recent acquisitions in the Midwest, Texas, and the Carolinas, as well as a focus on renovations and improvements, Morgan Properties is poised to continue its success and solidify its position as a major player in the U.S. apartment market.
