SEATTLE—TruAmerica Multifamily continues to grow its Pacific Northwest portfolio with the acquisition of two apartment communities, one in the Seattle area, and the other near Portland OR in an off-market transaction valued at $48.75 million.
The seller was San Francisco-based FPA Multifamily. TruAmerica acquired the 92-unit Township Apartment Homes in Canby, OR and the 202-unit Windsor Apartment Homes in Renton, WA, in partnership with a syndicate of domestic and international institutional investors including Allstate and The Guardian Life Insurance Company of America.
In the past three months, TruAmerica has invested more than $230 million in the Pacific Northwest with the acquisition of 1,598 units in Seattle and Portland. Most recently the Los Angeles-based real estate investment firm closed on a five-property, 918-unit portfolio acquisition that included apartment home communities in Kent, WA, and the Portland, suburban communities of Tualatin and Wilsonville. TruAmerica manages a Pacific Northwest portfolio of over 3,700 units with plans to acquire an additional 2,200 units by the end of the year.
With its capital partners, TruAmerica acquires, renovates and repositions mid-tier apartment communities in Western U.S. growth markets, to create higher quality rental housing that is still affordable to working class families being priced out of the urban core.
“The construction of new rental housing in and around Seattle and Portland has not been able to keep pace with job growth,” said TruAmerica acquisitions executive Noah Hochman.
Citing a report by Stewart Title, Hochman says there are currently 2.7 net new jobs per new dwelling unit.
“And what is being built is not affordable for working families,” he added. “Renters today are spending more of their income on rent than they have in the past 30 years. A family making $75,000 a year, would have to pay approximately 40% of their gross annual income to rent a new two-bedroom apartment in Portland. That number is now closer to 50% in downtown Seattle.”
The Township Apartment Homes is a garden style apartment community offering one-, two- and three-bedroom floor plans and is located in one of Canby's most established neighborhoods. Built in 1999, the property features a clubhouse, recreation room, fitness center and children's playground.
Built in 1989, The Windsor Apartment Homes offers one-, two- and three-bedroom floor plans each with wood burning fireplaces and private patios. The well –amenitized property features a pool and spa, basketball courts and playground as well as a fully equipped athletic and fitness center that includes an indoor racquet ball court, dry sauna, and tanning beds.
Capitalizing on the previous owner's extensive renovations to the clubhouses and common areas at both properties, TruAmerica will undertake a modest exterior renovation program including new spa areas, dog parks and other amenity improvements. TruAmerica will focus on full interior upgrades with new faux wood flooring and carpets, cabinets and countertops, kitchen appliances and washers and dryers. When completed, the properties will be well positioned to compete with newer product in the area and appeal to both lifestyle and price centric renters.
TruAmerica Multifamily is a vertically integrated value-add multifamily investment firm based in Los Angeles. Founded in July 2013 as a joint venture between Robert Hart and The Guardian Life Insurance Company of America, TruAmerica has been one of the country's most active multifamily investors and manages a $3.9 billion portfolio of more than 19,000 units across prime locations throughout Northern and Southern California, Washington, Oregon, Colorado, Arizona, Nevada and Utah.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
