Los Angeles, CA (May 8, 2019) – TruAmerica Multifamily (in partnership with an institutional partner) has acquired a two-property, 608-unit apartment portfolio of assets in the Las Vegas and Atlanta metros in an off-market transaction valued at $96.8 million.

TruAmerica in joint venture with its institutional capital partners has invested nearly $500 million this year in value-add apartment communities in Florida, Georgia, Nevada and Colorado.   This is its second investment with this partner, after creating a joint venture in January 2018 that acquired a 635-unit portfolio of assets located in the Denver and Seattle metros for $127 million.  

“We continue to see positive signs that the economic demand drivers for multifamily investment in our target markets are strong and will remain so for the foreseeable future,” said TruAmerica Multifamily Head of Acquisitions and Co-Chief Investment Officer Matthew Ferrari.   “Both of these markets exhibit strong job growth, stable occupancy projections, and a demonstrable supply/demand imbalance and we will continue to look for value add investment opportunities in these and other target markets throughout the United States.”

The acquisition of the 368-unit Vintage Pointe in Las Vegas and the 240-unit Sweetwater Creek in the Atlanta suburb of Lithia Springs are the most recent examples of TruAmerica’s commitment to those markets.  With the acquisition of Vintage Pointe, TruAmerica has grown its portfolio in the Silver State to approximately 4,000 units since entering the market in 2016.    After making its first investment in Atlanta earlier this year TruAmerica now owns four properties totaling nearly 1,400 units. 

While well maintained, neither Vintage Pointe, built in 1994 nor Sweetwater Creek built in 2003, have benefitted from significant physical renovations providing the TruAmerica joint venture with strong value-add upside, according to Ferrari.  The new ownership will invest in a multi-million dollar capital improvement program across the portfolio to reposition both properties on par with the competitive set in those markets.  

TruAmerica Multifamily, in partnership with Oaktree Real Estate Income Trust (“Oaktree”), has acquired Anzio, a 448-unit class “B” multifamily community in Atlanta.

Anzio represents the third deal TruAmerica has bought in Atlanta this year and continues the firm’s growth in the Southeast in a meaningful way, according to TruAmerica Co-Chief Investment Officer Matthew Ferrari.  In January, TruAmerica purchased Junction at Vinings, a 360-unit community, and The Prato at Midtown, a 342-unit property in separate transactions totaling $127.35 million. 

“The Atlanta market offers excellent multifamily fundamentals and continues to attract Fortune 500 firms from multiple industries, creating strong job and population growth.  This has resulted in tremendous demand for well-located, quality rental properties” said Ferrari, who oversees the firm’s acquisition team.

Anzio is located at 3100 Sweetwater Road in Lawrenceville, and is part of the broader Gwinnett County submarket.  TruAmerica was attracted to the area’s educational system and pro-business government that is attracting top employers, according to Ferrari.  Gwinnett County is one the fastest growing counties in the nation, having more than doubled its population since 2000. 

Built in 1986 and sitting on 35.4 acres, Anzio features a mix of one- and two-bedroom homes with large floorplans averaging 975 square feet.  Anzio provides TruAmerica with an opportunity to transform all 448 homes to a more modern finish level with stainless “faux” steel appliances, hard surface flooring, tile backsplashes, upgraded plumbing and lighting fixtures and new washer and dryers.  TruAmerica will also make significant upgrades to the common areas including the community’s two pools and surrounding decks, clubhouse, fitness center, barbecue and outdoor dining areas, dog park and sports courts.  

Brian Eisendrath and Annie Rice of CBRE Capital Markets, Inc. facilitated the debt on behalf of TruAmerica and Oaktree. 

Nathan Swenson of Cushman & Wakefield represented both parties to the transaction. 

TruAmerica Multifamily has acquired in separate transactions, Loretto Heights, a 312-unit apartment community in Denver, CO for $72.25 million and Legends at Lake Mary, a 272-unit apartment community in Orlando, FL for $54 million.

Following an active 2018 with acquisition volume of nearly $1 billion, TruAmerica has now made more than $300 million in multifamily investments in the first two months of the year, including its first in the state of Georgia.    With Loretto Heights and Legends at Lake Mary, the Los Angeles-based multifamily investment firm increases its already substantial footprints in two of the strongest multifamily markets in the country, according to Head of Acquisitions and Co-Chief Investment Officer Matthew Ferrari. 

“Both Denver and Orlando benefit from sound multifamily fundamentals including continuing job and population growth, and a limited supply of new rental housing to meet demand,” said Ferrari. “The ability to acquire both properties at a significant discount to new construction allows us to improve the properties to compete with higher priced product in the area, but still keep rents in line for our residents.”

TruAmerica now owns and operates five properties in Denver totaling approximately 2,000 apartments.

Built in 1988, Loretto Heights is located 15 minutes from Downtown Denver, which is home to 133,000 daytime employees and has experienced a 74 percent increase in tech employment since 2010.  It is also centrally located to a variety of major employers such as Oracle, United Healthcare, and TransAmerica. Denver has one of the most diverse economies in the country, with no major industry making up more than 18 percent of its total employment.

With only 61 of the 312 apartments fully upgraded, Loretto Heights, represents an attractive value-add opportunity.   In addition to bringing the remaining homes to fully renovated status with new stainless steel appliances, hard-surface flooring, stone countertops and modern lighting and plumbing fixtures, TruAmerica will upgrade the exterior and common areas to enhance the property’s overall curb appeal.  

HFF’s Denver office led by Jordan Robbins and Anna Stevens represented both parties in the transaction.   

As a Freddie Mac Select Sponsor, TruAmerica leveraged the acquisition with attractive financing through the agency’s 10-year floating rate program, arranged by Charles Halladay, Michael Gigliotti and Jamie Kline of HFF.  

Legends at Lake Mary is TruAmerica’s eighth asset in Orlando and increases its Florida holdings to more than 4,400 apartments. Other assets are located in Boynton Beach, Fort Myers and Tampa-Clearwater.

Legends at Lake Mary is a low-density community (8.3 homes per acre) located in one of the most affluent submarkets in the Orlando MSA.  Bordering the Timacuan Golf Club, the property features 18, two-story wood frame buildings housing a mix of one-, two-and three-bedroom homes, each with an attached garage.

“Rising construction and land costs have made it economically unfeasible to replicate this type of property in the current market environment, which truly makes Legends at Lake Mary an irreplaceable asset,” added Ferrari.   

Over the last five years, Orlando has averaged job growth of 3.9 percent, far surpassing the national average.  Additionally, Orlando’s population grew by 17.6 percent from 2010-2017, making it the third fastest growing city in the country. 

While the property has been well maintained only a small percentage of the homes have been upgraded since its construction in 1997. In addition to full interior unit renovations including new appliances and modern finishes, TruAmerica also will make improvements to the community’s numerous amenities including the clubhouse, fitness center, tennis and volleyball courts, and pool areas in order to improve the quality of living for the residents. 

Newmark Knight Frank Multifamily led by Scott Ramey and Kevin Judd marketed the property on behalf of the seller.

TruAmerica qualified for seven-year fixed-rate financing through Freddie Mac’s Green Loan program by including energy saving improvements in the renovation plan.   The financing was arranged by Newmark Knight Frank’s Capital Markets team led by Mitch Clarfield and Ryan Greer.  

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.