Acquisition is part of the investor’s plan to double Pacific Northwest portfolio by end of the year
LOS ANGELES, September 29, 2015 – TruAmerica Multifamily, in partnership with a consortium of institutional investors including Allstate and the Guardian Life Insurance Company, completed the purchase of a seven-property multifamily portfolio with assets located in Seattle, WA, Portland, OR and Salt Lake City, UT, for a total of $255 million. The seller was Philadelphia-based Equus Capital Partners Ltd.
The 1,829-unit portfolio includes Ridgegate in Kent, WA; Alderwood Park in Lynnwood, WA; Ridgetop and Wellington, both in Silverdale, WA; Boulder Creek and Bridge Creek, both in Wilsonville, OR; and Settler’s Point in Salt Lake City, UT.
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 today’s 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.
The region has seen some of the best job growth metrics nationwide in its metropolitan areas, such as Seattle, where employers including Boeing, Amazon.com, Microsoft and Google helped reduce the city’s unemployment rate to 3.6 percent in August. That’s well below the national rate of 5.1 percent, according to Washington Employment Security Department data.
Like Seattle, Portland benefits from a diverse array of economic drivers, which have propelled the city to become the 6th highest-performing metropolitan area in the nation with a 3.1 percent market vacancy rate, according to rental data company Axiometrics Inc.
The multifamily portfolio also included the 416-unit Settler’s Point in Salt Lake City, another top-performing market, which complements the Crossing at Daybreak, a 315-unit apartment home community in South Jordan, UT, which was acquired by the firm in May.
“The transaction is our third portfolio acquisition with our partners at Guardian and Allstate in the past 15 months, representing 7,000 units spanning five states with an aggregate value of more than $1 billion,” said Robert Hart, President and Chief Executive Officer at TruAmerica. “This portfolio exemplifies our investment philosophy and our favorable outlook on the Class B rental sector.”
TruAmerica’s value-add investment strategy focuses on assets located in suburban communities close to these types of high-growth urban markets in the western United States, where newer construction has priced out many renters. While the company considers opportunities in downtown areas on a selected basis, 80 percent of its transactions take place just outside of the urban core.
“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. We think these suburban properties will present attractive and affordable options for these young families and older residents alike,” said Edgar Alvarado, Group Head of Real Estate for Allstate.
TruAmerica will invest more than $30 million across the portfolio to extensively renovate the properties’ amenities, including making significant upgrades to the existing clubhouses, fitness centers and landscaping. The scope of work also will include attractive renovations to unit interiors with the addition of new faux wood flooring and carpet, countertops, appliance packages, and washers and dryers at specific properties.
“This portfolio fits perfectly into our value-add investment strategy. We were able to acquire the properties significantly below replacement cost, which will allow us to create a high quality yet affordable option for working class families and young professionals,” said Robert LoCascio, Managing Director of Guardian’s Real Estate Investments group.
Brian Eisendrath and Cameron Chalfant of CBRE Capital Markets arranged the financing on the PNW properties, while Allan Freedman and Ed Zimbler of Berkadia arranged the Salt Lake City property financing.
Jon Hallgrimson, Eli Hanacek, Frank Bosl, Graham Taylor and Carrie Kahn of CBRE and Greg Barratt of Berkadia represented both the buyer and seller in the transaction.
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.
A mutual insurer founded in 1860, The Guardian Life Insurance Company of America (Guardian) and its subsidiaries are committed to protecting individuals, business owners and their employees with life, disability income and dental insurance products, and offer funding vehicles for 401(k) plans, annuities and other financial products. Guardian operates one of the largest dental networks in the United States, and protects more than eight million employees and their families at over 115,000 companies. The company has approximately 5,000 employees in the United States and a network of over 3,000 financial representatives in more than 80 agencies nationwide. For more information about Guardian, please visit www.GuardianLife.com.
The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer, protecting approximately 16 million households from life’s uncertainties through its Allstate, Encompass, Esurance and Answer Financial brand names. Allstate is widely known through the slogan “You’re In Good Hands With Allstate®.” The Allstate brand’s network of small businesses offers auto, home, life and retirement products and services to customers in the United States and Canada. In the 20 years since Allstate became a fully independent public company, The Allstate Foundation, Allstate, its employees and agency owners have donated more than $405 million to support local communities.