Firm Profile
Merion was established in 2011 by William Landman and Richard Aljian as a real estate investment and management platform. To date, Merion has invested over $369 million in multifamily properties on behalf of itself, institutional-type joint venture partners and high net worth individuals and continues to actively pursue multifamily investment opportunities. Prior to 2011, Messrs. Landman and Aljian were partners for over 16 years at a private equity firm specializing in multifamily funds as an equity provider. During that time, the private equity firm invested capital across a broad cross section of real estate asset classes on behalf of high net-worth investors. Over this period, approximately $1.4 billion was raised by the firm and invested through 20 real estate related private equity funds focusing on multifamily, hospitality, medical office, single tenant net leased, and gaming.
Merion
AllianceBernstein Joint Venture
Merion Realty Partners closed its first sponsored acquisition and institutional raise in December 2011. Merion along with its joint venture partner, an affiliate of AllianceBernstein U.S. Real Estate Partners L.P., acquired a 20 property multifamily portfolio consisting of 4,900 units with locations in Nashville, Memphis, Atlanta, Macon, Bradenton, Pensacola, Mobile, Tuscaloosa and Birmingham. The portfolio acquisition required $49.5 million of equity and included an $8 million value-add capital improvement program that was funded on an ongoing basis from cash flow. The portfolio underwent varying levels of renovations and the Partnership commenced a programmatic disposition plan that fully realized the portfolio in the 4th quarter of 2015.
Merion
Multifamily Fund
The Merion Multifamily Fund (“Merion Fund”) was raised in 2013 with equity commitments from a small group of high net-worth investors. The fund targets investments in primarily value-add apartment projects located in select secondary markets in the Southeast, Mid-Atlantic and Northeast. In May 2013, two value-add multifamily opportunities in Jacksonville, FL were acquired by the fund with a total capitalization of approximately $45 million. The business plan underwrote a value-add strategy with capital improvements to the property exterior, clubhouse, amenities and an interior renovation program. On July 1, 2014 a 252 unit community located in Lebanon, NH was acquired by Merion in a joint venture with a private fund with a total capitalization of approximately $41.5 million. The property is located in close proximity to the Dartmouth-Hitchcock Medical Center and has established a direct relationship with the medical center as its preferred housing for medical staff. In November 2014 the Fund made a co-investment in The Austin, a 300 unit property located in Deptford, NJ that has undergone transformative renovations of the clubhouse, leasing center and amenities, implementation of a water/sewer bill-back program and a interior unit upgrade program. In April 2016, the Fund acquired its fifth and final asset, a 400 unit property located in Birmingham, AL with a total capitalization of $38 million including a planned $6,000,000 renovation.
Merion
AllianceBernstein Joint Venture II
Merion partnered with AllianceBernstein US Real Estate Partners II in November 2014 to acquire a seven property portfolio of multifamily assets consisting of 2,091 units. The portfolio required approximately $60 million of equity and included a $12 million value-add capital improvement program that will be funded from cash flow on an ongoing basis. The assets have each received varying levels of upgrades to the clubhouses, leasing centers, amenities as well as interior unit upgrades. The assets acquired are located in Lawrenceville, New Jersey; Deptford, New Jersey; Wilmington, Delaware; Tacoma, Washington; Raleigh, North Carolina; Sarasota, Florida and Houston, Texas.
Merion
Multifamily Investment Fund II
Through Merion’s high net worth platform, in July 2019, Merion closed its second multifamily fund, the Merion Multifamily Investment Fund II, L.P. (“Merion Fund II”). The fund targets investments in primarily value-add apartment projects located in select secondary markets in the Southeast, Mid-Atlantic and Northeast. At time of inception the fund had five pre-identified investment opportunities. In July 2019, The Collings at the Lumberyard, a 104 unit mixed-use, transit-oriented community located in Collingswood, NJ, was acquired by Merion Fund II in a joint venture with a trust with a total capitalization of approximately $35 million. In July 2019 the fund redeemed a minority equity interest in The Fountains at Deerwood and Timberwalk Apartments, two value-add multifamily opportunities in Jacksonville, FL totaling 524 units that were originally acquired by Merion Fund I and a private fund. On July 16, 2019, The Monroe, a 288-unit community located in Tallahassee, FL was acquired by Merion Fund II in a joint venture with a private fund with a total capitalization of approximately $38 million. On July 31, 2019 Merion Fund II in a joint venture with a private fund acquired its fifth and final asset, Flagler Pointe Apartments located in St. Petersburg, FL totaling 416 units with a total capitalization of approximately $45 million.
Merion
Multifamily Investment Fund III
Merion Multifamily Fund III acquired a pre-identified, “off market” four-property apartment portfolio consisting of 640 multifamily apartment units located in three distinct New Jersey sub-markets in April 2021.
The properties were constructed in 2013, 2014, 2016 and 2019 and all experienced swift lease-up. The portfolio of assets had performed very well over the past year despite the negative effects of the COVID-19 pandemic, maintaining high occupancies and very little delinquency, mirroring Merion’s experience with its portfolio of high-quality, well-located communities. The seller was interested in working with Merion due to surety of close, ease of transacting under one contract and was concerned with subjecting their properties and staff to the operational disruption that takes place during an open market bidding process amid a pandemic.
Merion plans to make limited interior upgrades throughout the portfolio in conjunction with implementation of Merion’s property management, maintenance management and revenue management systems, to maximize net operating income. The portfolio fits well within Merion’s strategy to acquire well located suburban multifamily assets that have a compete amenity package with quality design and construction that will minimize spending on deferred maintenance and help protect current equity returns and offers immediate cash flow to investors.