- Morgan Properties has acquired 11 multifamily properties in the Midwest for $501M, marking the largest multifamily deal of 2025 to date.
- The deal adds over 3,000 units to Morgan’s portfolio, boosting its total Midwest holdings to 14,500 units—up from just 793 units in 2019.
- The firm is targeting rent increases through property improvements while maintaining affordability, citing undersupply and growing demand in cities like Columbus, St. Louis, and Indianapolis.
- With national rents expected to rebound, the Midwest’s steady rent growth and job creation in key sectors make it a strategic play for long-term returns.
A Strategic Shift Toward the Heartland
Morgan Properties is making a decisive move into the Midwest, a region long overshadowed by the Sunbelt’s post-pandemic boom. According to the WSJ, the Pennsylvania-based firm—known as the largest privately held apartment landlord in the U.S.—announced the $501M acquisition of 11 multifamily properties across the region. The portfolio was sold by Trilogy Real Estate Group and brings Morgan’s national holdings to over 100,000 units for the first time in its four-decade history.
Why the Midwest, Why Now?
“The Sunbelt was obviously hot post-Covid,” said Jonathan Morgan, co-president of Morgan Properties. “At the moment, it’s the Midwest.”
Historically overlooked in favor of faster-growing coastal and southern metros, the Midwest is now drawing investor attention for one big reason: supply strain. While new construction continues to boom elsewhere, multifamily starts in the Midwest dropped 66% year-over-year in February, according to RealPage. At the same time, rents have continued to rise, defying national trends of stagnation or decline.
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Growth in Rent and Jobs
With an average rent of $1,400/month across the newly acquired properties, Morgan sees an opportunity to boost income through renovations and operational efficiencies—without pushing renters out. That balance of value-add investment and affordability has become a key part of the company’s strategy.
Job growth is also adding fuel to the fire. According to ADP, the Midwest added 81,000 private sector jobs in March, second only to the South. Cities like Indianapolis and St. Louis are seeing surges in employment in manufacturing, logistics, and education—sectors expected to continue expanding.
Outlook: A Sunbelt Alternative
The Midwest is shaping up to be a strategic counterweight to the overbuilt Sunbelt, where aggressive post-pandemic construction has led to rent softening in key markets. In contrast, the Midwest’s chronic undersupply and steady demand offer a more stable environment for long-term multifamily investment.
According to Morgan Properties, the portfolio aligns well with their investment strategy and offers room for growth through renovations without pushing rents into unaffordable territory.
Why It Matters
Morgan Properties’ $501M acquisition signals a growing shift among institutional investors looking beyond traditional hotspots. With supply constrained and rents continuing to climb, the region presents a compelling case for value-add plays—especially in cities with emerging job growth across logistics, manufacturing, and education sectors.
What’s Next?
Expect more capital to follow Morgan’s lead. As national rent growth regains momentum, markets like Columbus, St. Louis, and Indianapolis could become the next frontier for large-scale multifamily investment.
