Dealmaker: TruAmerica JV Acquires California Apartments for $86M
TruAmerica Multifamily, Los Angeles, and capital partner ASB Real Estate Investments, Bethesda, Md., acquired Orange County, Calif. multifamily community Corte Bella for $85.8 million.
The 251-unit property in Fountain Valley, Calif. represents TruAmerica’s second Orange County investment this year. In February, the firm acquired a 264-unit apartment community in Huntington Beach for $90.5 million.
TruAmerica Director Zach Rivas called Fountain Valley a centrally located Orange County submarket with a shortage of modern rental housing. “The vast majority of Fountain Valley’s 4,200 multifamily units were built prior to 1980, and due to high barriers to entry, there is very little new product in the pipeline,” he said.
Built on 12 acres in 1969, Corte Bella was 97 percent occupied at closing. TruAmerica and ASB plan a multimillion-dollar capital improvement program including installing washer/dryer connections in each apartment.
Moran & Co., Irvine, Calif., marketed the property. Berkeley Point Capital Senior Managing Director Mitch Clarfield arranged 10-year financing through Freddie Mac’s select sponsor program.
In La Mesa, Calif., TruAmerica Multifamily and partner Intercontinental Real Estate Corp., Boston, acquired Alterra & Pravada at Grossmont Station for an undisclosed price.
Completed in 2010 by seller Fairfield Grossmont Trolley LLC and the San Diego Metropolitan Transit Authority, the community includes six four-story buildings on a high-density eight-acre site. Of the 527 units, 15 percent are dedicated for moderate and low wage earners.
The largest of 23 transit-oriented developments in San Diego County, the property is immediately adjacent to the Grossmont Transit Center in La Mesa, 11 miles east of downtown San Diego and within walking distance to La Mesa’s largest employer Sharp Grossmont Hospital and The Grossmont Shopping Center’s million-plus-square feet of retail shops and restaurants.
Kevin Mulhern, Rachel Parson, Stewart Weston and John Montakab of CBRE’s San Diego Multifamily Investment Group represented TruAmerica, Intercontinental and Fairfield Grossmont Trolley LLC in the transaction. CBRE’s Capital Markets group led by Vice Chairman Troy Tegeler secured 10-year acquisition financing through Fannie Mae.
