Dealmaker: TruAmerica Multifamily Buys Utah Apartments for $48M

A joint venture between TruAmerica Multifamily, Los Angeles, and Investcorp, Bahrain, acquired 253-unit Country Lake Apartments in Salt Lake City, Utah, for $47.5 million.

Marcus & Millichap subsidiary Institutional Property Advisors represented seller Aukum Group, Larkspur, Calif., in the transaction.

“Propelled by robust job growth for degreed positions, demand for Salt Lake City apartments is strong and the city’s vacancy rate is one of the lowest in the nation,” said IPA Senior Managing Director Steve Gebing. He worked with Marcus & Millichap Senior Managing Director Cliff David, Senior Vice President of Investments Danny Shin and Vice President of Investments Brock Zylstra on the deal.

Axiometrics reported Salt Lake City occupancy has averaged 95.9 percent over the last 12 months and rent growth has averaged 5.2 percent over the past three years. Constructed in 1973, Country Lake Apartments gives new ownership the opportunity to add value through the continuation of the apartment interior renovation program, Shin said.

TruAmerica Director Chris MacLeod said the firm will undertake a significant capital improvement program including upgrading apartment interiors, renovating community amenities, adding a fitness center and refreshing exteriors and landscaping.

The property is in Salt Lake City’s “Silicon Slopes,” an area populated by tech companies including SanDisk, Intel/Micron and Adobe Systems. This tech cluster is a primary demand driver for the region’s large concentration of white-collar workers, including a growing number of millennials.

The acquisition increased TruAmerica’s Salt Lake City-area holdings to 1,595 units. This represents the fourth apartment community in Salt Lake City for TruAmerica and its first since October 2015, when it acquired a two-property portfolio for $102 million in partnership with The Guardian Life Insurance Co. of America.