- Morgan Properties is acquiring Dream Residential REIT for $354M in cash.
- The deal adds 3,300 multifamily units across Texas, Oklahoma, and Ohio.
- Unitholders will receive an 18% premium at $10.80 per unit.
- The acquisition expands Morgan’s reach into the high-growth Sun Belt and Midwest markets.
Strategic US Expansion
Morgan Properties is the third-largest apartment owner in the US. The company is set to grow its portfolio through the acquisition of Dream Residential REIT, reports CoStar. Dream Residential is a Canadian-listed company with exclusive holdings in the American Sun Belt and Midwest. The deal would bring 3,300 multifamily units under Morgan’s management, most of them garden-style apartments in high-growth metros.
A Premium Exit For Dream
The all-cash deal offers Dream Residential REIT’s unitholders US $10.80 per unit, representing an 18% premium over the REIT’s prior closing price. The transaction concludes Dream Residential’s strategic review and is expected to close by the end of 2025, subject to unitholder approval.
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The Bigger Picture
Founded in 1985, Morgan Properties owns and operates over 100K units across 22 states, with a historic focus on the Northeast. This acquisition strengthens its position in Texas and the Midwest, where rental growth is outpacing national averages, according to Apartments.com.
This move also ends the REIT’s existing agreements with Dream Unlimited and Pauls Corp. Dream Residential has agreed to pay US $7M to cover termination fees and wind-down costs.
Why It Matters
The deal reflects a growing trend among large US multifamily investors to scale up in high-growth, lower-cost markets outside the traditional coastal hubs. It also highlights cross-border activity in North American real estate, as Canadian-listed REITs with US holdings become attractive acquisition targets.
What’s Next
If approved, the deal will solidify Morgan Properties’ position in regions with strong population and job growth. It will also mark the exit of Dream Residential REIT from public markets just three years after its launch.
