LOS ANGELES, CA (August 28, 2014) –TruAmerica Multifamily, the investment firm formed by industry veteran Robert E. Hart and The Guardian Life Insurance Company of America, today announced the acquisition of Summit at Hilltop, a 240-unit apartment complex in Richmond, Calif. for $38.8 million. The transaction was completed in conjunction with Intercontinental Real Estate Corporation, which was led by Jessica Levin, Director, Acquisitions, and represents the third such partnership between TruAmerica and Intercontinental. The investment will benefit from attractive seven-year Fannie Mae fixed rate financing with full term interest-only payments arranged by Troy Tegler and Brian Eisendrath of CBRE. Following last month’s purchase of Summit at Paradise Valley in Fairfield, Calif., Summit at Hilltop represents the fourth Bay Area acquisition to TruAmerica’s growing multi-state portfolio.
“The San Francisco Bay Area continues to be a top target as we expand our reach, and Richmond’s favorable economic and real estate market conditions make the East Bay city one of the strongest rental submarkets in the region,” says Greg Campbell, Senior Managing Director of Acquisitions at TruAmerica. “With convenient access to major employment centers, competitive amenities and retail centers, Richmond offers an affordable alternative to renters who are priced out of neighboring communities, including El Cerrito, Berkeley and Emeryville. Summit at Hilltop presented a unique value-add opportunity to invest in a high-quality 1990’s asset in an attractive walkable neighborhood.”
Situated on a highly desirable hilltop, the apartment complex boasts dramatic bay and city views from a majority of its 240 units. Spanning 10 buildings across 12 acres, Summit at Hilltop is comprised of a mix of well-designed one- and two-bedroom floor plans. In addition to offering rare bay views, the property also provides residents with a fully walkable neighborhood created by two major retail and entertainment centers located within close proximity. Capitalizing on the temperate Northern California climate, the resort-style design of Summit at Hilltop embraces an active indoor/outdoor lifestyle through an array of fitness amenities and attractive architecture. The property is also convenient to Interstate 80, providing high visibility to the heavily trafficked freeway and a short commute to the largest employment centers in the East Bay.
TruAmerica’s property upgrade plans will enhance the common area amenities and modernize the unit interiors, many of which are in original 1990’s condition. The apartment community’s improvements will include a refreshed fitness center and pool area in addition to interior upgrades such as contemporary kitchens and modern surface finishes. These upgrades will bring the value-add property in line with competitive properties in the area to fulfill the demand for well-located, high-value, affordable workforce housing.
“This acquisition represents a tremendous opportunity to invest in a high quality, value-add asset that is extremely appealing to tenants given the property’s proximity to a sizeable base of employers and Interstate 80, a major arterial serving the San Francisco Bay Area,” says Jessica Levin, who is based in Intercontinental’s Los Angeles office.
TruAmerica has maintained an impressive acquisition pace as the firm moves into its second year of operation with 14 new acquisitions valued at over $934 million since launching in July 2013.
About TruAmerica Multifamily
TruAmerica Multifamily, founded by industry veteran Robert E. Hart and The Guardian Life Insurance Company of America in July 2013, is an investment firm focused on acquiring, managing and rehabilitating Class B or better multifamily housing in the Western part of the United States. In June 2014, the firm launched a new investment platform with Allstate Life Insurance Company, a subsidiary of The Allstate Corporation (NYSE: ALL). The firm’s $2.4 billion management portfolio includes more than 12,600 units across prime locations throughout Northern and Southern California, Colorado, Arizona and Washington. For more information on TruAmerica Multifamily, visit www.truamerica.com or call (424) 325-2750.
About Guardian
A mutual insurer founded in 1860, The Guardian Life Insurance Company of America (Guardian) and its subsidiaries are committed to protecting individuals, business owners and their employees with life, disability income and dental insurance products, and offer funding vehicles for 401(k) plans, annuities and other financial products. Guardian operates one of the largest dental networks in the United States, and protects more than eight million employees and their families at over 115,000 companies. The company has approximately 5,000 employees in the United States and a network of over 3,000 financial representatives in more than 80 agencies nationwide. For more information about Guardian, please visit www.GuardianLife.com.
About Intercontinental Real Estate Corporation
Intercontinental Real Estate Corporation is an SEC registered investment adviser with expertise in real estate investment, development, asset management, and construction management. Since inception in 1959, Intercontinental has managed, developed, and owned over $8 billion in real estate property. Today, Intercontinental owns and manages a portfolio in excess of $3.2 billion for its clients. Intercontinental balances its portfolio both by robust property mix and by geographic diversification, while actively seeking opportunities to invest in both core and core plus, as well as value-add development projects. Visit www.Intercontinental.net or call (617) 782-2600 for more information.