Los Angeles, CA (December 19, 2016) — TruAmerica Multifamily has sold four apartment communities located in the Seattle and San Francisco Bay Area markets for $275 million, capping an active fourth quarter in which the Los Angeles-based investment firm closed on transactions totaling $675 million.
The four apartment communities with a combined 1,047 units were among TruAmerica’s first investments after industry veteran Robert Hart founded the firm with The Guardian Life Insurance Company of America® in 2013. Proceeds from the four separate dispositions exceeded investor targets and averaged double-digit cash-on-cash returns over three-year hold periods adding to TruAmerica’s already impressive track record for its investors.
In November 2015, TruAmerica exited its first investment, a 564-unit apartment community in Denver, CO, after meeting its five-year investment objectives in just 18 months.
TruAmerica has earned a reputation as one of the most active multifamily investors in the United States, building a $6.3 billion portfolio in less than three years from inception. The institutional investment community has taken notice that TruAmerica can skillfully assemble a portfolio of apartment communities and expertly execute a value-add business plan, according to TruAmerica CEO and founder Robert Hart.
“With more than 31,000 apartment units under management, the process of opportunistically exiting investments to deliver strong risk-adjusted returns to investors, and concurrently identify new value-add opportunities, must be disciplined, patient and precise,” said Hart. “Our team has done a masterful job of building a portfolio of strategically located assets in key growth markets throughout the United States. Through our vertically integrated platform that also includes in-house construction and asset management, we have been able to reposition these underperforming assets through thoughtful renovation and improved operations. With these timely dispositions, we now have been able to put points on the board and deliver impressive returns to our investors in the form of durable cash-flow yield and asset appreciation.”
“Our circle of partners continues to expand, along with their interest in investing with us on more opportunities,” stated, Robert LoCascio, Managing Director of Guardian’s Real Estate Investment Group. “This is testimony not just to the continuing viability of the sector as an investment class, but to Bob and his team’s experience as an operating partner and expertise to implement a well thought-out business plan.”
The following assets were recently sold by TruAmerica:
- Arcadia Luxury Townhomes, a 309-unit property in Federal Way, WA, to a private multifamily investment firm
- The Vineyards, a 170-unit property in Gilroy, CA, to ABL Properties, Inc.
- Avenel Apartments, a 168-unit community in San Jose, CA to Pacific Urban Residential
- Carriages at Fairwood Downs, a 400-unit townhome community in Renton, WA to Sequoia Equities
TruAmerica Multifamily also remained an active buyer in the fourth quarter, acquiring more than 2,500 units in three separate markets in transactions totaling more than $400 million. The acquisitions included a 1,402-unit, six-property multifamily portfolio in suburban Baltimore, MD, for $236 million, TruAmerica’s second significant investment on the East Coast. It also marked TruAmerica’s first joint venture with publicly traded Ares Management (ARES).
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 $6.3 billion portfolio of approximately 31,000 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.
The Guardian Life Insurance Company of America® (Guardian) is one of the largest mutual life insurers with $7.3 billion in capital and $1.5 billion in operating income (before taxes and dividends to policyholders) in 2015. Founded in 1860, the company has paid dividends to policyholders every year since 1868. Its offerings range from life insurance, disability income insurance, annuities, and investments to dental and vision insurance and employee benefits. The company has approximately 8,000 employees and a network of over 3,000 financial representatives in more than 70 agencies nationwide. For more information about Guardian, please visit our website www.GuardianLife.com. You can also follow Guardian on Facebook, LinkedIn, Twitter and YouTube. Financial information concerning The Guardian Life Insurance Company of America® as of 12/31/15 on a statutory basis: Admitted Assets = $48.1 Billion; Liabilities = $42 Billion (including $37 Billion of Reserves); and Surplus = $6.1 Billion.