Dealmaker: TruAmerica Acquires Two Multifamily Assets for $142M

TruAmerica, Los Angeles, acquired two multifamily properties in metro Phoenix and Las Vegas for $142.1 million.

The firm acquired Galleria Palms in Tempe, Ariz. and Aviata in Henderson, Nev. in a joint venture with asset manager Oaktree Capital Management, Los Angeles.

“We like the long-term outlook for Phoenix and Las Vegas based upon positive demographics and the high demand for rental housing,” said Oaktree Managing Director Mark Jacobs.

The venture paid $75.1 million for 424-unit Galleria Palms. Built in 1997 on 27 acres, the property is one of the few low-density, garden-style communities in Tempe. Galleria Palms’ location puts residents within a 20-minute drive of more than 500,000 jobs.

Galleria Palms is TruAmerica’s fifth asset in the Phoenix area, giving it nearly 2,000 units in the area.

TruAmerica and Oaktree also acquired 456-unit property Aviata in an off-market transaction for $67 million. The asset, which dates to 1998, is TruAmerica’s eighth investment in the Las Vegas area and increases its regional portfolio to 3,251 units.

Under direction of TruAmerica Senior Managing Director of Capital Improvements Amir Eshkol, TruAmerica will undertake a significant capital improvement program on both properties, including upgrading all unit interiors, renovating all community amenities including pool areas and clubhouses, as well as exteriors and landscaping to enhance curb appeal.