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6/19/15
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In recent multifamily investment news, TruAmerica Multifamily acquired three apartment home communities in Oregon and Washington in transactions totaling $125.3 mil.
The acquisitions include two properties in metro Seattle, where TruAmerica owns 1,788 units in King County, and one property in metro Portland, marking the Los Angeles-based investment firm’s entry into that market. The three apartment communities add 841 units to TruAmerica’s now 8,500-unit multifamily portfolio acquired in just 24 months.
TruAmerica acquires and repositions mid-tier apartment communities in an effort to provide higher quality housing in growth markets throughout the Western United States, addressing a growing shortage of Class B or better affordable rental units for working class families. According to real estate market consultancy Yardi Matrix, 85% of multifamily units built since the beginning of 2014 are priced beyond the means of working families. Yet, the demand for housing options for middle-income families remains strong, particularly in the Pacific Northwest, which is experiencing significant job growth in technology, manufacturing, leisure and hospitality, retail, construction and warehousing. This has resulted in some of the best rent growth in the country
TruAmerica partnered with DVO Real Estate and RCG Longview for a second time to acquire The Haven at Charbonneau, a 126-unit community in Wilsonville, OR, 30 miles south of Portland, and Somerset, a 329-unit community in Kent, WA. Both assets were purchased from FPA Multifamily.
In a separate transaction, TruAmerica partnered with Intercontinental Real Estate Corporation for a fourth time to acquire from Eaton Vance the 386-unit Firdale Village located in the desirable north Seattle submarket of Edmonds. Firdale is a garden-style community that is easily accessible to most Seattle MSA locations, where renters seeking larger homes, mature landscaping, and a less dense setting are left with few options.
Recognized by Forbes as the number one urban market for high-tech job growth, Seattle is one of the nation’s top rental markets due to healthy job creation, real wage growth and a young, skilled workforce. Large employers including Boeing, Amazon, Microsoft and Google are expanding their physical footprint and employee headcounts. The Seattle MSA has recovered all the jobs it lost during the Great Recession and has experienced wage growth of over 9% since bottoming out in 2009.
Both Firdale and Somerset benefit from “first ring” suburban locations expected to see demand from middle-income renters priced out of multifamily product closer to central Seattle, according to Jessica Levin, Director, Acquisitions for Intercontinental.
TruAmerica plans to invest $13 mil in property capital improvement programs, which will include full renovations of all unit interiors, building exterior repairs and enhancements, and significant upgrades to the common area amenities ultimately bettering the resident living experience.
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