Los Angeles, CA, July 22, 2015 — TruAmerica Multifamily and institutional partners DVO Real Estate and RCG Longview have completed a five-property value-add portfolio acquisition from FPA Multifamily with the additions of two apartment communities in Seattle, WA and another in Portland, OR.
The newest assets in TruAmerica’s growing Pacific Northwest portfolio include the 76-unit The Lighthouse and the 177-unit The Village at Lake Meridian, in Kent, WA, as well as Park at Tualatin, a 210-unit community in the Portland, OR suburb of Tualatin. In June, TruAmerica acquired from FPA, Haven at Charbonneau, a 126-unit community in Wilsonville, OR, and Somerset, a 329-unit community in Kent, WA. Total consideration for the entire off-market portfolio purchase was $115 million.
TruAmerica specializes in identifying, acquiring and repositioning apartment communities to provide higher quality housing in growth markets throughout the Western United States addressing a growing shortage of Class B or better affordable rental units for working class families. One of the most active buyers of multifamily assets in the United States, TruAmerica has built a portfolio of 36 properties with nearly 9,500 units since its founding in 2013. Approximately one quarter of those communities are located in the Seattle and Portland metros.
TruAmerica plans to take advantage of the operational synergies to provide high quality housing to families and individuals being priced out of the Seattle and Portland CBDs, according to Senior Managing Director Noah Hochman, who led the acquisition team.
“The Pacific Northwest brings some of the best economic fundamentals in the country right now and 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,” said Hochman. “Growing our portfolio here in Pacific Northwest as well as other Western US markets, allows us to benefit from economies of scale thus reducing operational costs. Also, we were able to acquire the properties at well below replacement cost, which enables us to create additional value with thoughtful renovations.
TruAmerica plans to invest approximately $8 million in interior unit and common area improvements across the portfolio. Renovations to unit interiors include updating kitchens with new appliances, cabinets, countertops, lighting and and hardware. Common area upgrades will enhance the renter experience with scenic landscaping, fresh pool furniture, a dog park and an outdoor kitchen.
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 $3.7 billion portfolio of more than 18,000 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.
About DVO Real Estate
DVO Real Estate is a real estate investment firm founded by industry veteran David Valger in 2012. The firm provides structured equity solutions for institutional quality, multifamily assets located in top-tier growth markets throughout the U.S. DVO targets middle market properties where maximum value can be created through renovation, repositioning and recapitalization strategies. The firm focuses on providing downside protection with upside participation and seeks to provide capital preservation and consistent cash flow. For more information on DVO Real Estate, visit www.dvorealestate.com or call (212) 391-0902.
About RCG Longview
RCG Longview is a real estate investment platform created by Ramius LLC, The Feil Organization, Michael Boxer, Jay Anderson and Jonathan Estreich. Since 1999, the principals have leveraged off their collective expertise, as owners and managers of real estate and have successfully employed such philosophy to the RCG Longview investment activities. Over its lifespan, RCG Longview has invested in a diverse set of real estate assets ranging from mezzanine loans, to value-add multi-family, to ground up development projects, and continues to do so in the latest series of acclaimed RCG Longview Funds. For more information on RCG Longview, visit www.rcglongview.com or call (212) 356-9200.