HUNTINGTON BEACH, CA—TruAmerica Multifamily has acquired Pacific Shores, a 264-unit multifamily asset here, for $90.5 million from UDR Inc. The buyer is planning a multi-million-dollar capital-improvement plan for the property, keeping rents affordable for working families.
GlobeSt.com has learned that Pacific Shores is TruAmerica's first acquisition in Huntington Beach and it's second in Orange County. The firm also owns Skye in Laguna Niguel.
Located at 7701 Warner Ave., Pacific Shores features a mix of one- and two-bedroom floor plans with washer and dryer, private balcony or patio and walk-in closets. The buyer will immediately begin its renovation program, building on the moderate renovation of unit interiors started by the seller.
TruAmerica will also undertake a complete overhaul of 74 units that have been virtually untouched since the property was constructed in 1970. Improvements will include new stone countertops with under-mount sinks, kitchen backsplash and cabinet doors. Upgrades to the community amenities and exterior will include improvements to the pool and spa area, dog park and fitness center, as well as new signage landscaping, lighting and outdoor-barbecue areas.
Greg Campbell, senior managing director of acquisitions and dispositions for TruAmerica, said in a prepared statement that the competition for this property was extremely fierce. “Huntington Beach is a high-barrier-to-entry market boasting great multifamily fundamentals, and the opportunity to acquire an institutional-quality asset with such tremendous upside is difficult to find here.”
The acquisition was leveraged with seven-year agency financing through Freddie Mac's select-sponsor program. Financing was arranged by Berkeley Point Capital senior managing director Mitch Clarfield. Mark Petersen of Eastdil Secured led the team that marketed the property on behalf of the seller.
Upgrading workforce housing has been a necessary theme in Huntington Beach of late. As GlobeSt.com reported in January, institutional-fund manager Interstate Equities Corp. has acquired Surf at 39, a 400-unit, coastal-infill multifamily asset here, for $134 million and intends to upgrade units to meet tenant needs but keep the complex as a workforce-housing community. While some apartment owners and developers are over-improving, Interstate Equities Corp. is concentrating on optimizing space for the current tenant rather than fashioning it after a different tenant profile's tastes, co-president and CEO Marshall Boyd told GlobeSt.com.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
