TruAmerica Spends $482M on Multifamily Portfolio
CEO Bob Hart (snapped at the company's holiday party) says the off-market deal provides a rare opportunity to acquire a large value-add portfolio in one swoop. The 14-property portfolio bought from JH Real Estate Partners consists of 2,699 units and is mostly 1980s-era product in LA, SD and the Inland Empire. TruAmerica partnered with a number of domestic and international institutional investors including The Guardian Life Insurance Company of America and Allstate in the deal, which the company says is the largest multifamily asset purchase in SoCal in nearly two decades. Lee & Associates LA-North/Ventura principals Jim Fisher and Mike Smith repped JH Real Estate.
TruAmerica says it will invest about $40M in repositioning the buildings, which will include exterior and interior unit upgrades, and community amenities. Plans include fixing up the pool areas, fitness centers and landscaping. Inside the units, TruAmerica will renovate countertops, appliances, cabinets, flooring and light fixtures. The buy was leveraged with a $354M FannieMae Credit Facility from Berkeley Point Capital, which was originated by senior managing director Mitch Clarfield.