TRUAMERICA MULTIFAMILY MAKES FIRST EAST COAST INVESTMENT WITH ACQUISITION OF 1,004-UNIT BALTIMORE PORTFOLIO
LOS ANGELES , MAY 2, 2016 — TruAmerica Multifamily, in partnership with MSD Capital, L.P., has expanded its geographical footprint to the East Coast with the acquisition of a 1,004-unit apartment portfolio in suburban Baltimore, MD, in an off-market transaction valued at $187 million.
Los Angeles-based TruAmerica, one of the most active multifamily investors in the United States, has acquired a portfolio that now totals more than 17,000 units with an aggregate value over $3 billion. To date, TruAmerica has specialized in the acquisition and repositioning of mid-tier apartment communities in the Western U.S. but the acquisition of this portfolio is the first for TruAmerica east of Colorado as it expands its value-add platform to include select East coast growth markets.
The portfolio is comprised of the 158-unit Bayshore Landing in Annapolis, the 634-unit Sherwood Crossing in Elkridge, and the 212-unit Southfield in Nottingham. Each property is well–amenitized, featuring resort-style pool areas, clubhouses, fitness centers and other recreational facilities. The properties were built between 1984 and 1990.
“Similar to the West Coast markets in which we invest, substantially all of the new apartment inventory being built in the greater Baltimore area is targeted for ‘renters by choice,’ effectively pricing out the working class,” said TruAmerica CEO Robert Hart. “This was a major factor in the decision to target the Baltimore and Annapolis markets for our first East Coast investments.”
“MSD Capital continues to see attractive opportunities in repositioning older multi-family assets,” observed Barry Sholem, head of MSD Capital’s real estate group. “We are excited to partner with TruAmerica on this portfolio, and look forward to pursuing other business together.”
The Baltimore metro has experienced 60 consecutive months of positive year-over-year employment growth, which is expected to continue with an average of 19,000 new jobs per year over the next five years.
“This puts extraordinary pressure on, and underscores the need for, affordable quality rental housing to support that growth,” said Hart.
TruAmerica will complete an interior renovation plan initiated by the seller that includes faux-wood flooring, granite countertops, updated cabinetry and new appliance packages. TruAmerica’s business plan also calls for thoughtful upgrades to common area amenities.
“Baltimore is one of the top performing economies in the Mid-Atlantic and benefits from one of the most educated resident profiles in the United States.” said Greg Campbell, Senior Managing Director, Acquisitions. “As a result of these healthy, long-term job drivers, the three submarkets where the assets are located are experiencing tremendous demand from a younger population that prefers to rent rather than own.”
According to RealtyTrac, a national real estate information provider, Baltimore is the top market in the United States for renting to Millennials.
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 $5.4 billion portfolio of more than 27,000 units across prime locations throughout Northern and Southern California, Washington, Oregon, Colorado, Arizona, Nevada, Utah and Maryland. For more information on TruAmerica Multifamily, visit www.truamerica.com or call (424) 325-2750.
About MSD Capital, L.P.
MSD Capital, L.P. is the private investment firm that was established in 1998 to exclusively manage the capital of Michael Dell and his family. The firm utilizes a multi-disciplinary investment strategy focused on maximizing long-term capital appreciation by making investments across the globe in the equities of public and private companies, credit, real estate and other asset classes and securities. MSD Capital’s team operates from the firm’s offices in New York and Santa Monica.