Dealmaker: TruAmerica Multifamily Buys Maryland Apartments for $187M

TruAmerica Multifamily, Los Angeles, expanded its geographical footprint to the East Coast by acquiring a 1,004-unit Maryland apartment portfolio in an off-market transaction valued at $187 million.

To date, TruAmerica specialized in acquiring and repositioning mid-tier apartment communities in the western U.S. This acquisition in partnership with MSD Capital LP marks the firm’s first purchase east of Colorado as it expands its value-add platform to include some East coast growth markets.

The portfolio includes the 158-unit Bayshore Landing in Annapolis, the 634-unit Sherwood Crossing in Elkridge and the 212-unit Southfield in Nottingham. All properties date between 1984 and 1990.

“Similar to the West Coast markets in which we invest, substantially all of the new apartment inventory being built in the greater Baltimore area is targeted for ‘renters by choice,’ effectively pricing out the working class,” said TruAmerica CEO Robert Hart. “This was a major factor in the decision to target the Baltimore and Annapolis markets for our first East Coast investments.”

Hart said the Baltimore metro experienced 60 consecutive months of positive year-over-year employment growth, which could add an average of 19,000 new jobs per year over the next five years. “This puts extraordinary pressure on–and underscores the need for–affordable quality rental housing to support that growth,” he said.

TruAmerica plans to complete an interior renovation plan initiated by the seller that includes new flooring, granite countertops, updated cabinetry and new appliance packages.

“Baltimore is one of the top-performing economies in the Mid-Atlantic and benefits from one of the most educated resident profiles in the United States,” said TruAmerica Senior Managing Director of Acquisitions Greg Campbell. “As a result of these healthy long-term job drivers, the three submarkets where the assets are located are experiencing tremendous demand from a younger population that prefers to rent rather than own.”