LOS ANGELES, December 10, 2015 – TruAmerica Multifamily, in partnership with its institutional equity investors including Allstate and The Guardian Life Insurance Company of America (Guardian), completed a $104.75 million purchase of a five-property off-market multifamily portfolio with assets located in submarkets of Seattle, WA and Portland, OR.
The portfolio includes The Hanover in Beaverton, OR; V7 Apartments in Vancouver, WA; Constellation Apartments in Renton, WA; Park 120 in Everett, WA; and The Commons in Federal Way, WA.
The last phase of a 14-property, $408.5 million portfolio purchase, which began in September, this latest acquisition adds 829 units to the Los Angeles-based investor’s rapidly expanding Pacific Northwest portfolio. In the past six months, TruAmerica and its institutional partners have invested approximately $600 million in the acquisition of more than 3,800 units in suburban Seattle and Portland bringing the total number of assets under management in the Pacific Northwest to almost 7,000 units.
“This is an extremely diversified portfolio of affordable and desirable assets, which is in demand by middle class households, the greatest percentage of renters in the United States,” said Robert Hart, President and Chief Executive Officer at TruAmerica. “It exemplifies our investment philosophy and our favorable outlook on the Class B rental sector.”
The improving economy has led to rapid rent acceleration and a particular focus on the construction of expensive high-end multifamily housing, both regionally and nationally. This has forced working families and young professionals to migrate into “first ring” submarkets for more affordable options. TruAmerica’s value-add investment strategy focuses on western U.S. assets located in suburban communities close to high-growth urban markets where this phenomenon is most prevalent.
“The addition of this portfolio underscores our commitment to identify, acquire and reposition apartment communities to provide higher quality housing in growth markets and offer affordable, highly amenitized rental units for working class families and young professionals,” said Robert LoCascio, Managing Director of Guardian’s Real Estate Investments group.
TruAmerica will invest more than $10 million across the portfolio to extensively renovate the properties in order to carve out a niche above traditional older vintage properties and to provide a value alternative to new construction in the area. Unit improvements will include new faux wood flooring and carpet, countertops, appliance packages, and washers and dryers at specific properties. The scope of work also will include site specific upgrades to existing clubhouses, pool areas and fitness centers.
“We are excited to continue our successful partnership with TruAmerica. We believe this portfolio focused on growth markets in the Pacific Northwest provides very attractive yet affordable options for renters in these markets,” said Michael Durst, Associate Director, Real Estate Equity at Allstate.
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 $4.7 billion portfolio of more than 24,000 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.
The Guardian Life Insurance Company of America® (Guardian) is one of the nation’s largest mutual life insurers, with $6.8 billion in capital and $1.3 billion in operating income (before taxes and dividends to policyholders) in 2014. 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 for individuals to workplace benefits, such as dental, vision, and 401(k) plans for businesses. The company has approximately 6,000 employees and a network of over 3,000 financial representatives in more than 70 agencies nationwide. For more information about Guardian, please visit www.guardianlife.com.
The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer, protecting approximately 16 million households from life’s uncertainties. Allstate’s real estate investments group has decades of experience and looks for core and value-add opportunities across geographies in the United States and internationally, and in a range of investment vehicles, such as funds, co-investments and joint ventures. Allstate’s real estate investments include retail, multi-family, office and industrial properties.