LOS ANGELES—TruAmerica Multifamily in partnership with its institutional equity investors including Allstate and the Guardian Life Insurance Co. of America completed a $104.75 million purchase of a five-property off-market multifamily portfolio with assets located in submarkets of Seattle, WA and Portland, OR.
The portfolio includes The Hanover in Beaverton, OR; V7 Apartments in Vancouver, WA; Constellation Apartments in Renton, WA; Park 120 in Everett, WA; and The Commons in Federal Way, WA.
The last phase of a 14-property, $408.5 million portfolio purchase, which began in September, this latest acquisition adds 829 units to the Los Angeles-based investor's rapidly expanding Pacific Northwest portfolio.
In the past six months, TruAmerica and its institutional partners have invested approximately $600 million in the acquisition of more than 3,800 units in suburban Seattle and Portland bringing the total number of assets under management in the Pacific Northwest to almost 7,000 units.
"This is an extremely diversified portfolio of affordable and desirable assets, which is in demand by middle class households, the greatest percentage of renters in the United States," says Robert Hart, president and CEO at TruAmerica. "It exemplifies our investment philosophy and our favorable outlook on the class B rental sector."
The firm points out that the improving economy has led to rapid rent acceleration and a particular focus on the construction of expensive high-end multifamily housing, both regionally and nationally. This has forced working families and young professionals to migrate into "first ring" submarkets for more affordable options. TruAmerica's value-add investment strategy focuses on western US assets located in suburban communities close to high-growth urban markets where this phenomenon is most prevalent.
"The addition of this portfolio underscores our commitment to identify, acquire and reposition apartment communities to provide higher quality housing in growth markets and offer affordable, highly amenitized rental units for working class families and young professionals," says Robert LoCascio, managing director of Guardian's Real Estate Investments group.
TruAmerica will invest more than $10 million across the portfolio to extensively renovate the properties in order to carve out a niche above traditional older vintage properties and to provide a value alternative to new construction in the area. Unit improvements will include new faux wood flooring and carpet, countertops, appliance packages, and washers and dryers at specific properties. The scope of work also will include site specific upgrades to existing clubhouses, pool areas and fitness centers.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
