TruAmerica Could Be a Net Seller This Year

TruAmerica Multifamily could be a net seller this year. If they are, it would be the first time in the workforce housing investor’s history. This year, it was nearly split between buying and selling activity, and Bob Hart of the company says that there is a 50-50 chance the company will close 2020 as a net seller.

‘We are almost 50-50 buying and selling. This year, we could be a net seller—maybe. I give it 50-50,” Hart, founder and CEO of TruAmerica Multifamily tells GlobeSt.com.

While the company may be net sellers, it will still be an active buyer. “We are giving ourselves some geographic diversity. California has been very hard to buy in, although we did do a few deals there this year,” says Hart. “We have to balance it out. We are still in every major city Denver and West and we are still along the Eastern Coast, but we want to start to play in the center. It is more about diversity than changing the strategy.

In fact, there are already plans to expand into new markets this year. As a result, it will be buying—or at least looking for opportunities—in markets across the nation. “In the first quarter this year, we will enter the middle of the country and open an office in Dallas, so we are expanding our markets a little bit. We will also be cooling off some other markets,” says Hart.

The new entry into Middle America will help to replace some markets where there are fewer deals, like more mature West Coast markets. The new markets will also underscore the growth areas where the company has found opportunities. “Selectively, we haven’t been a player in Oregon for the last few years. We have been a net seller in that market,” says Hart. “Other than that, we have gone to where the growth is and where the transactions happen. We have been a net buyer in Florida, Georgia, Arizona and Nevada. Those have been our top four markets. We also entered North Carolina this year.”

The mix-up of markets is just about the only change that TruAmerica is making. Otherwise, it plans to remain true to its core strategy. “The only adjustment that we make is to reevaluate markets every year, but our workforce housing value-add strategy is the same,” says Hart. “Our overall strategy has been consistent for about six-and-a-half years.”