Los Angeles – CBRE Capital Markets’ Debt & Structured Finance team has arranged $156.83 million in financing for the acquisition of a six-property, 1,413-unit multifamily portfolio located in Washington and Oregon.
The properties included in the transaction are:
· Alderwood Park, located in Lynnwood, Washington; 188 units
· Boulder Creek, located in Wilsonville, Oregon; 296 units
· Bridge Creek, located in Wilsonville, Oregon; 315 units
· Ridgegate, located in Kent, Washington; 153 units
· Ridgetop, located in Silverdale, Washington; 221 units
· The Wellington, located in Silverdale, Washington; 240 units
Brian Eisendrath and Cameron Chalfant of CBRE’s Beverly Hills office arranged the financing on behalf of Los Angeles-based TruAmerica Multifamily. CBRE secured seven-year, fixed-rate loans with three years interest-only on four of the properties, with a blended interest rate of 3.85 percent. The remaining two properties were financed with floating-rate loans with three years interest-only and a starting rate of 2.60 percent. TruAmerica will implement a value-add renovation program upon acquisition.
“TruAmerica performed flawlessly throughout the transaction on a portfolio that provides a phenomenal value-add opportunity and the ability to capitalize on the strong Seattle and Portland rental markets,” said Mr. Eisendrath. “A lot of strategic thought went into capitalizing the portfolio. By doing a deep dive into the business plan on each asset, we were able to match the most aggressive capital yielding the best returns.”
“We are extremely pleased with Brian and his team’s ability to accommodate a very smooth process and over deliver on all aspects of the loans,” said Robert Hart, CEO and President of TruAmerica. “They provided aggressive financing and were able to increase proceeds by more than $5.4 million from application to closing, which will help us to reposition these well-built assets.”
The acquisition adds 1,413 units in suburban Seattle and Portland to the Los Angeles-based investor’s rapidly expanding Pacific Northwest portfolio, which is expected to be well over 6,000 units by the end of the year. With this closing, TruAmerica—one of the most active buyers of multifamily assets in the United States—has invested more than $500 million in the Pacific Northwest since June.
About TruAmerica Multifamily
TruAmerica Multifamily is a vertically integrated value-add multifamily investment firm based in Los Angeles. Founded in July 2013 as a joint venture between Robert Hart and The Guardian Life Insurance Company of America, TruAmerica has been one of the country’s most active multifamily investors and manages a $4.3 billion portfolio of more than 21,000 units across prime locations throughout Northern and Southern California, Washington, Oregon, Colorado, Arizona, Nevada and Utah. For more information on TruAmerica Multifamily, visit www.truamerica.com or call (424) 325-2750.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.