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12/20/16
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TruAmerica Multifamily has collected $275 mil from the sales of four apartment communities located in the Seattle and San Francisco Bay Area markets. These deals capped an active fourth quarter in which the Los Angeles-based investment firm closed on transactions totaling $675 mil.
Arcadia Luxury Townhomes, Federal Way, WA |
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The four apartment communities with a combined 1,047 units were among TruAmerica’s first investments after industry veteran Robert Hart founded the firm with The Guardian Life Insurance Company of America® in 2013. Proceeds from the four separate dispositions exceeded investor targets and averaged double-digit cash-on-cash returns over three-year hold periods adding to TruAmerica’s already impressive track record for its investors.
The four assets recently sold by TruAmerica:
• Arcadia Luxury Townhomes, a 309-unit property in Federal Way, WA, was purchased by a private multifamily investment firm
• The Vineyards, a 170-unit property in Gilroy, CA, was acquired by ABL Properties Inc
• Avenel Apartments, a 168-unit community in San Jose, CA, was bought by Pacific Urban Residential
• Carriages at Fairwood Downs, a 400-unit townhome community in Renton, WA, was purchased by Sequoia Equities
“With more than 31,000 apartment units under management, the process of opportunistically exiting investments to deliver strong risk-adjusted returns to investors, and concurrently identify new value-add opportunities, must be disciplined, patient and precise,” said Hart. “Our team has done a masterful job of building a portfolio of strategically located assets in key growth markets throughout the United States. Through our vertically integrated platform that also includes in-house construction and asset management, we have been able to reposition these underperforming assets through thoughtful renovation and improved operations. With these timely dispositions, we now have been able to put points on the board and deliver impressive returns to our investors in the form of durable cash-flow yield and asset appreciation.”
TruAmerica Multifamily also remained an active buyer in the fourth quarter, acquiring more than 2,500 units in three separate markets in transactions totaling more than $400 mil. The acquisitions included a 1,402-unit, six-property multifamily portfolio in suburban Baltimore, MD for $236 mil, TruAmerica’s second significant investment on the East Coast. It also marked TruAmerica’s first joint venture with publicly traded Ares Management (ARES).
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