Case Study
3300 Tamarac:
Heavy Renovation Value-Add
Renovations and Rebranding
3300 Tamarac was purchased off-market and closed quickly with opportunistic pricing at a going-in 7.0% cap rate. TruAmerica rebranded the property with new signage and a new name – formerly known as Tamarac Village. Interior renovations include faux-wood flooring, countertops, kitchen appliances, and fixtures. TruAmerica overhauled all of the resident common areas, including fitness center, leasing office, pool area and resident lounge. After 20 months of ownership, TruAmerica sold the 3300 Tamarac property in 4Q15, during which time NOI grew over 13.7%. The asset appreciated 35% in value during the abbreviated hold period.
Updated signage, highlighting new branding
New resident clubhouse
Updated Fitness Center
Case Study
Carriages at Fairwood Downs:
Heavy Renovation Value-Add
Extensive Upgrades for Growth
The Carriages at Fairwood Downs was purchased as part of a $229 million 3-property multi-state portfolio. The transaction was capitalized with two major insurance institutions. TruAmerica updated unit interiors, with faux-wood flooring, countertops, kitchen appliances, and fixtures. Significant capital was invested to completely redesign the leasing office and fitness center. The property boasts one of the elite amenity packages in the submarket. Extensive wood upgrades and new paint provides the property an improved physical appearance. NOI growth of 15.6% since ownership.
Updated building exteriors
New signage with modern branding
Updated kitchen appliances
Renovated resident clubhouse
Repurposed racquetball court
Case Study
Ponderosa Villas:
Heavy Renovation Value-Add
Increasing Market Value with Modern Amenities
Ponderosa Villas was purchased as part of a $229 million 3-property multi-state portfolio; transaction was capitalized with two major insurance institutions.
In addition to interior renovations, a key business objective was to construct a new 4,000 SF leasing office/community center from scratch, as the property lacked this essential amenity. Constructing such a building would modernize the property and allow it to compete with other top rental communities in the submarket, while also allowing us to add 4 apartments to the unit mix by repurposing existing common area space.
The exceptional amenity package along with the incremental revenue from the new units will be significantly accretive to the property’s market value.
Renovated living rooms
Case Study
The Vermont:
Pre-Stabilized/Pre-Sale Transaction – Lease Up Value-Add
Opportunities to Add Value
The property was acquired with 10% occupancy, with TruAmerica purchasing the asset pre-stabilized and bearing full lease-up risk in exchange for favorable pricing. TruAmerica saw this as an opportunity to add value by completing residential lease-up and filling empty retail space. TruAmerica acquired the property upon delivery of Temporary Certificates of Occupancy with the Seller responsible for delivery of final CofO.
The property is subject to City Financing and various community benefit obligations including public green space, public artwork, and jobs creation mandates.
Case Study
Montecristo & Mercury Portfolios:
Large, Multi-Market Portfolio Transactions with International Capital Partners
Opportunities to Add Value
TruAmerica acquired two, 14-property portfolios with the same syndicate of domestic and international institutional partners in 2015. The total portfolio is made up of 5,621 units, located in 4 different states with a total equity investment of $357 million and over $1 billion in total deal capitalization.
The deals were structured with staggered hold periods with nuanced exit strategies; tiered and complementary renovation programs, thoughtful and diligent business plans to optimize returns. Debt and ownership structures were tailored to suit LP regulatory, tax and investment objectives. Flexibility in operating agreements accommodate foreign investor’s FIRPTA sensitivities and IFRS reporting requirements.