Dealmaker: TruAmerica Multifamily Acquires Three Properties for $217M

TruAmerica Multifamily, Los Angeles, acquired three apartment communities in California, Washington and Colorado for $217 million.

In Huntington Beach, Calif., the firm purchased 264-unit community Pacific Shores from UDR, Denver, for $90.5 million. The acquisition represents a value-add investment for TruAmerica, which targets Class B multifamily assets that could benefit from renovation while keeping rents affordable for working families. 

Located at 7701 Warner Avenue, Pacific Shores has one- and two-bedroom floorplans. TruAmerica will undertake a multimillion-dollar capital improvement program to build on UDR’s moderate unit interior renovation. Upgrades to the community’s exterior will include improvements to the pool and spa area, dog park and fitness center as well as new signage, landscaping, lighting and barbecue area.

“The competition for this property was fierce,” said TruAmerica Senior Managing Director of Acquisitions and Dispositions Greg Campbell. “Huntington Beach is a high barrier-to-entry market boasting great multifamily fundamentals; the opportunity to acquire an institutional-quality asset with tremendous upside is difficult to find here.”

Huntington Beach has some of the highest house prices in Orange County, creating strong demand for rental housing, said Eastdil Secured Managing Director Mark Petersen, who marketed the property for UDR.

TruAmerica leveraged the acquisition with seven-year financing through Freddie Mac. Berkeley Point Capital Senior Managing Director Mitch Clarfield arranged the financing.

The firm also acquired a 635-unit multifamily portfolio with assets in Denver and Seattle in a joint venture with Blackstone Real Estate Income Trust. The deal closed at $126.5 million.

The portfolio included two 300-plus unit garden-style apartment communities with a 94 percent occupancy rate. Montair is a 319-unit garden-style community on a low-density 13-acre site in Thornton, Colo. Walden Pond is a 316-unit golf course community in Everett, Wash. at the north end of Seattle’s High Tech Corridor.

As Freddie Mac Select Sponsors, the joint venture received acquisition financing through Freddie Mac’s seven-year fixed-rate program, which CBRE Vice-Chairman Troy Tegler arranged.