Dealmaker: TruAmerica Multifamily Acquires Three Properties for $129M
TruAmerica Multifamily, Los Angeles, acquired three multifamily properties in Florida and Arizona with two distinct joint venture partners for $129 million.
In Orlando, Fla., a TruAmerica Multifamily-Investcorp joint venture acquired 360-unit Montevista at Windermere and 348-unit Highpoint Club for $98 million.
“Investment sales in Florida have been much slower in the first half of the year, which has created a frenetic and competitive market for quality assets,” said TruAmerica Eastern U.S. Director of Acquisitions Matthew Ferrari. He noted said more than 60,000 people moved to Orlando last year; CBRE Econometric Advisors projects the area’s population will grow by 7.7 percent through 2021.
“The Orlando economy has diversified well beyond tourism and is now home to new jobs from a broad group of employment sectors including healthcare, telecom, biotech and high technology,” said Investcorp Managing Director Brian Kelley. “These sectors have fueled the Orlando job engine, which is leading the rest of the nation in employment growth.”
CBRE Debt & Structured Finance Group Executive Vice President Richard Jordan arranged a seven-year floating-rate agency loan for the partnership.
In Avondale, Ariz., 20 miles west of downtown Phoenix, TruAmerica and Ares Management Funds, New York, purchased 240-unit Broadstone Gateway for $30.75 million. The acquisition represented the second investment for the Ares-TruAmerica joint venture, which also acquired a 1,402-unit multifamily portfolio in Baltimore for $236 million last November.
Ares Real Estate Group Partner Howard Huang said the partnership will immediately execute a multimillion-dollar capital improvement program.
“Avondale is an example of the first-ring suburban submarket in which we typically invest and can add meaningful value,” said TruAmerica Multifamily Capital Markets Senior Managing Director Noah Hochman.
Institutional Property Advisors Senior Managing Directors Steve Gebing and Cliff David represented both parties in the transaction.
