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Friday, 24 July 2015

TruAmerica Venture Buys 5 Northwest Apartments for $115Mln

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A venture led by TruAmerica Multifamily has paid a total of $115 million for a portfolio of five apartment properties in the Portland, Ore., and Seattle suburbs.

The venture includes New York investment manager RCG Longview and DVO Real Estate LLC, a New York apartment specialist that was founded last year by David Valger, a former RCG partner. It bought the portfolio from an affiliate of Fowler Property Acquisitions of San Francisco.

TruAmerica, of Los Angeles, itself is a venture of Robert E. Hart, the former president of Kennedy Wilson Multifamily Management Group, and the Guardian Life Insurance Co. It was formed in 2013 with the aim of pursuing class-B properties in the western United States that it could buy for prices that would be lower than replacement costs.

It since has acquired 36 properties with nearly 9,500 units, with a quarter of those in the Seattle and Portland areas. It manages 18,000 units in California, Washington, Oregon, Colorado, Arizona, Nevada and Utah valued at some $3.7 billion.

The properties it bought from FPA are all considered workforce housing in that they're considered class-B properties and charge moderate rents, when compared with those at properties in the downtown Seattle and Portland areas. Nonetheless, the TruAmerica team plans to invest another $8 million on upgrades, replacing appliances in individual units, cabinets, countertops and hardware. But its aim is to retain the properties' workforce tenancy.

"The strength and dynamism of the Seattle and Portland markets have created a housing demand that places severe financial burdens for those looking for quality rental housing at reasonable prices," explained Noah Hochman, senior managing director of TruAmerica. "We were able to acquire the properties at well below replacement cost, which enables us to create additional value with thoughtful renovations."

The properties in the portfolio and individual prices it paid are:

- the 329-unit Somerset at 25220 109th Place SE in Kent, Wash. Price: $40.5 million, or $123,100/unit;

- the 76-unit Lighthouse at 10710 SE 256th St. in Kent. Price: $11.5 million, or $151,316/unit;

- the 177-unit Village at Lake Meridian at 10925 SE 259th St. in Kent. Price: $19 million, or $107,345/unit;

- the 210-unit Park at Tualatin at 7800 SW Sagert St. in Tualatin, Ore. Price: $28 million, or $133,333/unit, and

- the 126-unit Haven at Charbonneau, at 8755 SW Illahee Court in Wilsonville, Ore. Price: $16 million, or $127,0000/unit.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.



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Additional Info

  • Syndicate to Realpoint: No
  • Sector: Multifamily
  • Subject: Property Acquisitions (ACQ)
  • Valuation: Between $100 million and $150 million
  • Private: No
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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