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1/05/18
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TruAmerica Multifamily, in its first joint venture partnership with an affiliate of Blackstone Real Estate Income Trust, Inc, has acquired a 635-unit multifamily portfolio consisting of two properties in the Denver and Seattle metros, in a transaction valued at $126.5 mil. Blackstone is the latest of 16 institutional capital partners to joint venture with TruAmerica in the past four-and-half years.
“Blackstone has made a significant commitment to the Class B value-add multifamily space and together we have long been looking for the appropriate investment in which to partner,” said Noah Hochman, Senior Managing Director of Capital Markets for TruAmerica. “We look forward to finding new opportunities to invest together again soon.”
The portfolio includes two 300+ unit garden-style apartment communities that have seen little or no renovation since they were constructed in 1984 and 1991. At a collective occupancy of approximately 94%, the two properties represent an excellent investment that features a combination of strong current income and tremendous upside growth potential, according to TruAmerica Director of Acquisitions Zach Rivas.
One of the acquisitions, Montair, is a 319-unit garden style community featuring a mix of one- and two-bedroom floorplans on a low-density 13-acre site at 8901 Grant St in Thornton, CO, the core of metro Denver’s thriving Northern suburbs. Montair is located less than two miles from the soon-to-be completed light rail station at Original Thornton and 88th, which will provide easy access to Downtown Denver. The property is also easily commutable to Denver’s major employment hubs including the I-25 Corridor, Interlocken Tech Business Park and the Health One North Suburban Medical Center.
The other asset, Walden Pond, is a 316-unit golf course apartment community comprising a diverse mix of one-, two- and three-bedroom apartment homes at 9990 12th Avenue West in Everett, WA. The large three-bedroom floorplans, which average approximately 1,300 square feet, are particularly attractive to families, who are attracted to the highly rated Mukilteo School District. The property also benefits from its location at the north end of Seattle’s High Tech Corridor, which provides an ongoing and expanding source of high paying technology and aerospace jobs.
With the acquisition of Montair and Walden Pond, TruAmerica and its partners now own and operate 14 properties totaling 2,892 units throughout Washington and six properties totaling more than 2,643 units in the Denver metro.
As Freddie Mac Select Sponsors, the joint venture received attractive acquisition financing through Freddie Mac’s seven-year fixed-rate program, which was arranged by Troy Tegler of CBRE. TruAmerica and the seller were represented by John Hallgrimson, Eli Hanacek and Frank Bosl of CBRE in the Walden Pond transaction and by David Moran and Pamela Koster of Moran & Company in the Montair transaction.
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