Dealmaker: TruAmerica, Allstate Buy Large California Apartment Community

TruAmerica Multifamily, Los Angeles, and joint venture partner Allstate Corp., Northbrook, Ill., acquired 519-unit Eagles Point apartment community in Escondido, Calif., for nearly $90 million.

Escondido is one of the fastest growing cities in north San Diego County. Its population has grown 6.3 percent over the past five years. But with fewer than 14,000 rental units and only two projects totaling 275 units in the construction pipeline, the city’s multifamily inventory is not close to keeping pace with its tremendous growth, said TruAmerica Senior Managing Director of Acquisitions and Dispositions Greg Campbell.

“Demand has far exceeded supply in Escondido, driving vacancy rates to a little more than one percent,” Campbell said. “And most of the current inventory in the area is older and lacks the amenities desired by today’s renter.”

CBRE Vice-Chairman Troy Tegeler led the debt-placement team that secured project financing through Fannie Mae, Washington, D.C. CBRE’s San Diego-based team of Kevin Mulhern, Rachel Parsons and Dixie Hall marketed the property for the seller.

Eagles Point includes studio, one-, two- and three-bedroom apartments that have not been updated since built in 1985, Campbell said. “The property has great infrastructure but lacked the reinvestment to make it relevant in today’s market.”

TruAmerica plans to invest “significant” capital to improve the property, Campbell said. The renovation plan–the largest in company history–includes refurbishing all interior units and upgrading the property’s two pools and spas, tennis courts and clubhouse.

Eagles Point sits across the street from the Walmart-anchored Vineyard Square Shopping Center. The property is served by Highway 78 and Interstate 15, providing access to downtown San Diego and coastal communities Carlsbad and Oceanside, Calif.