September 30, 2015

TruAmerica pays $255M for apartment portfolio

TruAmerica Multifamily of Los Angeles said it purchased an apartment portfolio that includes four local properties for $255 million.

The seven properties total 1,829 units in Washington, Oregon and Utah. The local properties are Ridgegate in Kent; Alderwood Park in Lynnwood; and Ridgetop and Wellington, both in Silverdale.

The portfolio also has two apartment complexes from the Portland suburb of Wilsonville, Oregon, and one in Salt Lake City.

TruAmerica teamed up with a group of institutional investors including Allstate Real Estate Investment Group and Guardian Life Insurance Co. of America to buy the portfolio from Equus Capital Partners of Philadelphia.

TruAmerica plans to spend about $30 million to renovate the seven properties. Each complex will receive upgrades to amenities and new floors, carpet, countertops and appliances for units.

TruAmerica expects to have a portfolio of more than 6,000 Pacific Northwest apartments by the end of the year. The firm has spent more than $500 million on Pacific Northwest apartments since June, TruAmerica said in a press release.

Approximately 80 percent of TruAmerica's 21,000 units are in suburbs just outside cities across the western U.S. The firm focuses on buying and renovating older buildings in hot markets where people have been priced out of prime neighborhoods by new construction.

“Urban living attracts many 18- to-34-year-olds in places like Seattle and Portland, but there are young families in these markets looking for a little more space, lower rents, good quality school systems and accessibility to major employers,” Edgar Alvarado, group head of real estate for Allstate, said in a press release. “We think these suburban properties will present attractive and affordable options for these young families and older residents alike.”

Jon Hallgrimson, Eli Hanacek, Frank Bosl, Graham Taylor and Carrie Kahn of CBRE and Greg Barratt of Berkadia represented the buyer and seller in the transaction.

Brian Eisendrath and Cameron Chalfant of CBRE Capital Markets arranged financing on for the Pacific Northwest properties, and Allan Freedman and Ed Zimbler of Berkadia arranged financing for the Salt Lake City property.