$41M deal follows debt, complaints at St. Pete apartments

The Morgan, a 304-unit apartment complex in south St. Petersburg that has faced mounting debt, unpaid utility bills and complaints about deteriorating living conditions, has changed hands following a federal bankruptcy proceeding.

Property records show Dallas-based Lurin Real Estate Holdings LXIV LLC transferred the complex at 5473 27th St. S. to BDS V FL Morgan LLC on Oct. 2. The deed was recorded in Pinellas County Oct. 7.

The transfer follows a Sept. 17 ruling by a federal bankruptcy judge in Texas approving a $41.1 million credit bid submitted by a secured lender identified in court documents as Bridge. The lender was the only qualified bidder for the property.

A credit bid allows a lender to use debt it is owed toward the purchase of a property, rather than paying the full amount in cash.

The change in ownership comes after a difficult stretch at the sprawling apartment community, where residents have complained about maintenance problems while the former owner struggled to pay its bills.

The Morgan sits on approximately 21 acres near 54th Avenue S., between 27th and 28th streets, a short distance from Interstate 275. Its 27 three-story buildings were constructed in 1972 and contain more than 315,000 square feet of living space. The property has one-, two- and three-bedroom apartments, along with swimming pools, a clubhouse, fitness center and playground.

Lurin purchased the complex for $49.5 million in 2022. By this year, the company had fallen behind on a $46.3 million mortgage, and the property was caught up in bankruptcy proceedings.

The financial trouble extended to city utilities.

In June, the Catalyst reported that the city was seeking more than $400,000 in unpaid water bills. The report also detailed residents’ complaints about mold, overgrown landscaping, an out-of-service laundry facility and problems with fire-safety systems.

The Pinellas County Health Department had closed one of the complex’s swimming pools.

The utility debt had been an issue for months. In July 2025, the city reported that Lurin owed approximately $453,000 across two water accounts serving the property. Residents received notices warning of a possible water shutoff if the balance went unpaid, even though they paid utility charges through their rent.

Lurin later made partial payments, bringing the outstanding balance to approximately $163,000 by Aug. 21, 2025, according to Spectrum Bay News 9. The city’s June 2026 figures indicate that substantial unpaid balances remained or accumulated afterward.

The bankruptcy order identifies another significant obligation involving the city. It recognizes a $722,838.81 secured claim held by St. Petersburg, with provisions for payment at closing.

The order does not specify how much of that claim, if any, involves unpaid utility bills.

The property’s condition had also drawn attention at City Hall.

During a June City Council meeting, Charles Phillips, representing the St. Petersburg Tenants Union, said the complex was roughly 30% occupied and urged the city to intervene on behalf of residents. That was his estimate at the time, not a verified current occupancy figure.

Housing advocates also raised the possibility of preserving the apartments as affordable housing if the property’s maintenance and management problems could be addressed. The council did not take immediate action on the proposal.

By July, the property was headed for sale.

The Catalyst reported that The Morgan was being offered at auction with a minimum bid of $42 million. The eventual winning bid came in at $41,081,036.63, according to the bankruptcy court’s Sept. 17 order.

The court approved the sale as part of Lurin’s Chapter 11 liquidation proceedings. The transaction allowed the property to be transferred free of most existing liens and claims, subject to certain exceptions, including the rights of tenants under existing leases.

The recorded deed identifies BDS V FL Morgan LLC as the new owner.

The Catalyst sought comment from representatives of the new ownership company, the property’s current management and the City of St. Petersburg. None responded before publication. Questions included the buyer’s plans for the complex, whether management or maintenance practices would change, and the nature of the city’s outstanding claim.

For the people still living at The Morgan, those questions remain unanswered. The court records establish who owns the property and how it changed hands. They offer no indication of what improvements, if any, are planned for the aging apartment complex.