By Jon Peterson
Los Angeles-based TruAmerica Multifamily paid $36.75 million or $181,000 per unit to buy the 202-unit Windsor Apartment Homes in Renton.
“It’s our opinion that there are many renters in Seattle that will be taking more of a look at Renton because of the price difference from a rental rate standpoint and still have the ability to get around. Rents would typically be $600 to $800 per month less in Renton than they would be in downtown Seattle or Bellevue. We also like that Renton has strong job growth in the region led by the likes of Boeing,” says Noah Hochman, a senior manager director of acquisitions and investor relations.
The cap rate on this transaction was in the low five percent range. “This return would be based on the current income that the property is producing,” said Hochman.
TruAmerica is planning to close on more apartment deals in the Seattle on Thursday of this week. This deal will include four more apartment properties in Seattle, two in Portland and one in Salt Lake City. Hochman declined to give details until the seven-property portfolio transaction has been completed.
The Windsor complex has very little vacancies. The asset is now stabilized. The new owner does plan on making some exterior improvements to the complex. This would include new spa areas, dog parks and other amenity improvements. The asset was developed in 1989. The seller of the property was San Francisco-based FPA Multifamily.
TruAmerica acquired the property in Renton as part of a two-property deal. It also paid $12 million or $130,000 per unit to buy the 92-unit Township Apartment Homes in Canby, Ore.
TruAmerica acquired both properties as part of a venture with The Guardian Life Insurance Company of America and AllState. This same capital source will be used by the buyer on the seven-property deal set to close on Thursday. Guardian Life is an 80 percent owner of TruAmerica Multifamily.
TruAmerica is hopeful of being able to acquire an additional 2,200 units in the Pacific Northwest by the end of 2015. Its current management portfolio in the region now totals over 3,700 apartment units.
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