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TruAmerica Multifamily has acquired Island Club, a 472-unit Class B apartment community in Orlando, FL in a $64 million transaction.
TruAmerica identified the Orlando MSA as its top target market in Florida after entering the state in 2017. The Island Club is TruAmerica’s seventh asset purchase in Orlando and boosts the Los Angeles-based real estate investment firm’s Florida holdings to more than 4,200 units. Other assets are located in Boynton Beach, Fort Myers and Tampa-Clearwater.
“We continue to look at opportunities and build upon our already significant presence in the greater Orlando area,” said TruAmerica Co-Chief Investment Officer Matthew Ferrari, who oversees the firm’s acquisition team. “Orlando continues to experience phenomenal job growth, with more than 52,000 jobs having been created in 2018 and 30,000 more expected in 2019, and exhibits some of the strongest multifamily fundamentals in the United States. TruAmerica and our investors certainly want to be here in a big way.”
Island Club benefits from a prime location in the desirable Metro West submarket, less than five miles from Downtown Orlando. Located at 1401 S. Kirkman Road, the property sits across the street from Valencia College, the third largest community college in the State of Florida with more than 26,000 students and nearly 1,000 faculty and staff. Other major employers located nearby include Universal Orlando Resort, the second largest employer in Orlando with 21,000 jobs, and the Orlando Heath Regional Medical Center, the seventh largest hospital in the U.S. with 14,000 employees and staff.
Built in 1990, Island Club is a gated community featuring a mix of one-, two-, and three-bedroom apartment homes located on a low-density 42-acre site. All homes feature walk-in closets, ceiling fans, full-size washers and dryers, and a patio or balcony, while select homes feature vaulted ceilings and fireplaces. Common area amenities include two lakes, two large resort-style swimming pools, two resident clubhouses, business center, bark park, lighted tennis court and picnic and barbecue areas.
With only 31 of the 427 apartments having been renovated by the seller, Island Club represents a strong value-add opportunity for TruAmerica, which will begin renovating apartment interiors through normal apartment turnover. Other improvements will include upgrading community amenities including pool areas, clubhouses, fitness centers and landscaping.
Shelton Granade, Luke Wickham and Justin Basquill from CBRE’S Orlando office represented the seller in the transaction.
TruAmerica’s investment will benefit from 10-year Freddie Mac debt financing, that is interest only for the first five years of the term. The financing was arranged by the CBRE Capital Markets team led by Vice Chairman and Managing Director Brian Eisendrath.
TruAmerica Multifamily in partnership with Tokyu Land US Corporation has made its first investments in Georgia acquiring two Atlanta apartment communities in separate transactions totaling $127.35 million.
Since entering the Southeast property markets in 2016, TruAmerica has focused its investments largely in Florida, where it has opened a regional office and built a sizeable portfolio of nearly 4,000 units in Orlando, Tampa, Fort Myers and Palm Beach. Having developed the necessary infrastructure to manage a growing regional portfolio, the firm felt increasingly comfortable with its plans to enter new markets in 2019, according to TruAmerica Senior Managing Director of Acquisitions and Co-Chief Investment Officer Matthew Ferrari.
“We look at new markets very strategically and cautiously, and the acquisition of Vinings Corner in Smyrna and The Prato at Midtown in Atlanta’s Old Fourth Ward was the right opportunity to enter the Georgia market and expand our footprint in the Southeast in a very meaningful way,” said Ferrari. “We’ve been in the market for several months and the competition for well-located communities with value-add upside, has been extremely fierce. In the end, the sellers were looking for high-quality bidders with the ability to execute and close.”
Vinings Corner is a 360-unit community located at 2101 Paces Ferry Road SE in Smyrna and the broader Vinings/Cumberland submarket, one of Atlanta’s largest employment centers. Built in 1983, Vinings Corner, which will be rebranded as Junction at Vinings, represents a true value add opportunity as only three percent of the apartment homes have been fully renovated. Anticipated upgrades to the one- and two-bedroom apartment homes include new appliances, stone countertops, cabinet faces and pulls, hard-surface flooring and upgraded plumbing and lighting fixtures. TruAmerica also will implement modest upgrades to the exterior and common areas including the pool, fitness center and dog park.
In a separate transaction, the TruAmerica-led joint venture also acquired The Prato at Midtown, a 342-unit Class B property located at 400 Central Park Place, NE in the Old Fourth Ward, one of Atlanta’s fastest growing urban neighborhoods. Taking advantage of economies of scale, TruAmerica will implement a capital improvement program similar to that of Vinings Corner, with interior and exterior renovations and upgrades.
This is TruAmerica’s first joint venture with Tokyu Land US Corporation (TLUS), a subsidiary of Tokyu Land Corporation, one of the largest Japanese real estate firms. TLUS focuses on real estate development and investment in major gateway cities in the U.S.
Both acquisitions were leveraged with attractive 10-year financing from Freddie Mac arranged by Brian Eisendrath of CBRE Capital Markets, Inc. for Vinings Corner, and Trevor Fase and Russell Dey of Walker & Dunlop for The Prato at Midtown.
Atlanta-based CBRE Southeast Multifamily, led by Vice Chairman Kevin Geiger marketed Vinings Corner on behalf of the seller. Atlanta-based Jones Lang LaSalle Managing Director’s David Gutting and Derrick Bloom marketed The Prato at Midtown on behalf of the seller.
Following one of its most active years in the company’s five-year history with $1.3 billion in transaction volume in 2018, TruAmerica Multifamily has made three key executive management moves promoting Noah Hochman and Matthew Ferrari to Co-Chief Investment Officers and Tammi Warner to Managing Director of Transactions and Underwriting, announced CEO and founder Robert E. Hart.
“While everyone at TruAmerica worked tirelessly to assemble and manage our ever-growing portfolio, a tremendous amount of credit goes to these three deserving individuals,” said Hart. “These promotions are recognition of the significant contributions they have made to the successful execution of our value-add platform to date, and for the contributions they will certainly make in our future growth. With more than $8 billion in AUM, our greatest assets remain the people that come through the front door every day.”
Hochman is a founding executive of TruAmerica and serves as Senior Managing Director of Capital Markets. Hochman heads investor relations and leads TruAmerica’s corporate equity and debt strategies, with responsibility for capital formation and joint venture structuring. In this role, Hochman has assisted in raising more than $2 billion in equity and has grown the firm’s institutional investor base to 23 domestic and off-shore capital partners. With more than 19 years of experience in multifamily transactions, Hochman also provides strategic leadership to TruAmerica’s acquisitions team and will continue working in tandem with Ferrari in shaping the firm’s investment strategy.
Ferrari serves as Senior Managing Director of Acquisitions now responsible for overseeing and directly sourcing opportunities in key metro markets in the Western and Eastern United States. Ferrari, has enjoyed a rapid rise through TruAmerica since joining the firm in 2016 from AvalonBay Communities to open the Arlington, VA office. He was named to lead the Eastern U.S. business operations in the Fall of 2017 and was promoted to his current position in April 2018. During his tenure at TruAmerica, Matt has played a meaningful role in the firm’s growth, having overseen more than $1.1 billion in acquisitions throughout the U.S., including entrance into the Mid-Atlantic and Southeast multifamily markets.
Warner, as head of transactions and underwriting, oversees the company’s acquisition, disposition, and financing transaction processes including legal review and closing management. Having joined the firm shortly after its inception in early 2014, she has been involved in over $5.2 billion of acquisitions and $1.2 billion of dispositions. In addition, Warner leads the processing of property due diligence, debt compliance and is the lead on equity partner and loan coordination.
Together Warner, Hochman and Ferrari, along with the firm’s agile acquisition and underwriting teams, form the nucleus of TruAmerica’s robust production operation which has been one of the most active multifamily investors in the United States over the past five years.
TruAmerica Multifamily, in joint venture with an institutional capital partner, has acquired a two-property, 472-unit apartment portfolio in Tempe, AZ for $67.3 million increasing its local portfolio to more than 2,400 units.
“We continue to be net buyers in Phoenix, and Tempe in particular,” said TruAmerica Director of Acquisitions Chris MacLeod. “Nearly six out of 10 residents in Tempe are renters making it the highest propensity to rent-vs-own submarket in Arizona. Despite the robust population and job growth, not much product has been added to the inventory. What has been built, is higher priced mid- and high-rise development, out of the reach of the majority of the area’s renter population. This has created a severe supply/demand imbalance and an extremely competitive investment environment. In the end, it was our local relationships and reputation for execution that was key to acquiring the portfolio,” said MacLeod.
The portfolio is comprised of 276-unit Highland Park and 196-unit Park View, located within a block of one another near the I-10 and Baseline Road, one of the major east/west arterials in Tempe. Each low-density garden style development was built in the early 1980s and feature one-, two- and three-bedroom apartment homes. Each community is highly amenitized with resort style pools, fitness centers, clubhouses and recreational areas. The properties are within a 20-minute commute from three major employment hubs: Sky Harbor, Downtown Tempe, and Papago, which accounted for more than 50 percent of the job growth experienced by the Phoenix metro from 2017 to 2018.
With the majority of apartment units still in their original condition, Highland Park and Park View represent a strong value-add opportunity for TruAmerica. TruAmerica will initiate a significant capital improvement program across the portfolio including upgrading apartment interiors, renovating all community amenities and refreshing exteriors and landscaping to meet the demands of today’s renter.
The acquisition was leveraged with favorable financing through Freddie Mac’s Select Sponsor Program originated by the CBRE Capital Markets team led by Vice Chairman Brian Eisendrath.
Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch from CBRE’s Phoenix office brokered the transaction.
Beverly Hills, CA (October 9, 2018) -- TruAmerica Multifamily has been awarded the inaugural Pet Pawsitive Award by the non-profit social enterprise Michelson Found Animals Foundation for its pet friendly policies and initiatives across its 37,000-unit portfolio.
The Foundation annually celebrates the efforts of local officials, businesses, individuals and organizations focused on improving the lives of pets and their people, and a recognition of the joy pets bring to our lives. The Foundation expanded its awards program, now in its seventh year, to include the inaugural Pet Pawsitive Award to recognize organizations with pet friendly policies that benefit their employees and customers, enrich the community and make a positive impact on pets and their people.
“Each year, I look forward to meeting the impressive individuals and organizations who are doing incredible work for pets in their communities and across the country,” said Dr. Gary Michelson, founder of Michelson Found Animals Foundation. “Whether spearheading animal rights legislation or making the world a little more pet friendly, their combined efforts play a huge role in the future of animal welfare. I am grateful for what they do and am honored to work beside them to further our mutual goal of saving animals and enriching lives.”
TruAmerica was recognized for providing people and their pets with a great experience at home. With 37,000 apartments from coast to coast, TruAmerica operates pet friendly communities which include award winning dog parks, dog centers, dog spas and more. Many of TruAmerica’s apartment communities regularly host special events and activities tailored toward pet owners and prospective owners including ‘Yappy Hour’ and adoption events.
“Pets are an enriching part of our lives that add a positive element to family life, which is why we adopted welcoming policies related to pets and their owners who reside in our safe pet friendly communities within our entire 37,000-unit apartment portfolio,” said TruAmerica President and CEO, Robert Hart. “It is an honor to be recognized by Michelson Found Animals which does so much to enrich the lives of pets and the people who love them.”
About TruAmerica Multifamily
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 $7.9 billion portfolio of approximately 37,000 units across prime locations throughout Northern and Southern California, Washington, Oregon, Colorado, Arizona, Nevada, Utah, Maryland and Florida. For more information on TruAmerica Multifamily, visit http://www.truamerica.com or call (424) 325-2750.
About the Michelson Found Animals Foundation:
Michelson Found Animals Foundation is a leading animal welfare non-profit organization committed to keeping pets safe at home with the pet parents who love them. With a mission of Saving Pets, Enriching Lives, Found Animals is advancing the health and safety of pets through the first free, national microchip registry, solutions-based programs addressing pet adoption, microchipping, low-cost spay neuter services and grants for research into non-surgical spay and neuter methods. The foundation provides educational resources for pet parents and support for a variety of animal welfare organizations and is also supporting start up innovation in the pet care industry with the Leap Venture Studio. Generously funded by Dr. Gary Michelson and Alya Michelson, Found Animals has helped more than 1.5 million pets since it was founded in 2005. Follow our progress online at www.FoundAnimals.org, or via social media at Facebook, Instagram, Twitter, and YouTube.
LOS ANGELES, CA (Sept. 11, 2018) — TruAmerica Multifamily has acquired Solis at Winter Park, a 596-unit Class-B multifamily property in Orlando, FL in a transaction valued at $79 million.
With the acquisition of Solis, TruAmerica, one of the fastest growing apartment operators in the United States, has invested approximately $500 million in nine Florida communities since entering the market in early 2017. The Los Angeles-based real estate investment firm’s Florida apartment portfolio totals more than 3,700 units, with more than 60 percent in the greater Orlando market.
“Orlando exhibits excellent multifamily fundamentals, and Solis is a great value add asset in the best zip code in the market,” said TruAmerica Senior Managing Director Matthew Ferrari, who oversees the firm’s acquisition team. “Orlando’s economy continues to grow and diversify well beyond tourism and is now home to new jobs from a broad group of employment sectors including healthcare, telecom, bio tech, and high technology. As a result, the metro led the nation for a third straight year with 3.8 percent job growth and has averaged 4.1 percent job growth over the last four years. That has created tremendous demand for well-located, quality rental properties.”
Solis at Winter Park is located within 20 minutes of more than 300,000 jobs, and five miles from the Central Florida Research Park, the largest research facility in the state. Its central location makes it ideal for dual-income households commuting to companies within the area, which include Apple, Bank of America, Northrup Grumman, Boeing, and Hewlett-Packard. It is also equally well situated to several large universities, including the University of Central Florida, the second largest university in the country based on enrollment.
Built in 1986, the low-density 30-acre property comprises 29, two- and three-story buildings with a mix one- and two-bedroom apartment homes averaging 862-square-feet, with many of the units having views of one of the property’s four lakes. The apartments feature stainless appliances, oversized closets, ceiling fans, and full-size washers and dryers while select homes feature vaulted ceilings and lake views. Community amenities include two pools, fitness center, lighted tennis courts, a sand volleyball court and a fenced dog park.
TruAmerica plans to renovate all apartment homes as leases expire. Improvements will include, faux-wood floors, stone countertops, cabinet fronts, modern lighting and green plumbing fixtures. Common area improvements will include upgrading both pool areas, and clubhouses, fitness center, as well as new landscaping and exterior paint to enhance the curb appeal of the property.
TruAmerica is assuming a Freddie Mac fixed rate loan and adding a supplemental loan arranged by Walker & Dunlop.
CBRE’s Shelton Granade, Luke Wickham, and Justin Basquill marketed the asset on the behalf of the seller.
“The rental market in Orlando is robust, with steady growth starting in the first quarter of 2011 and continuing through the first quarter of 2018,” Granade said. “The home ownership rate is still at a multi-decade low in the Orlando MSA, which favors the rental market, especially with people ages 18-35.”