Los Angeles, CA, June 10, 2015 – TruAmerica Multifamily and institutional capital partner Investcorp have acquired Solis at Flamingo, a 524-unit urban infill apartment community, from Alliance Residential in an off-market transaction valued at $50.5 million.
The acquisition of Solis at Flamingo is TruAmerica’s first investment in Nevada, and the third new market – including Salt Lake City, UT and Portland, OR — for TruAmerica in the past two weeks as the Los Angeles-based real estate investment firm continues its expansion into economically robust Western U.S. markets. TruAmerica specializes in identifying, acquiring and repositioning mid-tier 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. Since its founding in 2013, TruAmerica has acquired a portfolio of 9,000 rental units making it one of the most active multifamily property investors in the United States.
“Construction of new multi housing units throughout the United States has been on the rise for the past five years, but the majority of the new inventory is being priced out of the reach of middle-income working families,” said TruAmerica Senior Managing Director Greg Campbell who led the acquisition team. “Our platform’s core competency is the ability to identify and invest in assets at an attractive cost basis, where we can then create value through thoughtful renovation programs and improved operating performance and still offer an affordable quality living experience for our tenants.”
Built in 1988, Solis at Flamingo benefits from a prime location within five miles of the Las Vegas Strip, UNLV and McCarran International Airport and features a mix of one- and two-bedroom apartment homes. Common area amenities include three resort-style pools and spas, clubhouse, fitness center, business center and basketball and tennis courts.
We are seeing rent growth return to the Las Vegas market in recent months which should continue as large scale construction on The Strip contributes heavily to job growth and investment capital for the local economy,” added Campbell.
TruAmerica will invest an additional $5.5 million in capital improvements that will include full interior renovations combined with exterior and common-area upgrades including new landscaping, upgraded pool furniture, outdoor kitchens and a pet park which will significantly improve the resident living experience.
The Las Vegas market is in the early stages of recovery, with a young, diverse and rapidly growing population – the metro population increased at more than 6.5 times the national population growth rate from 1990 to 2015. Already the top convention and trade show destination in the US, the Las Vegas metro economy is diversifying. Healthcare jobs reached almost 10% of the total workforce in 2013, and are expected to grow, with projects such as Union Village, a $1.6 billion healthcare and hospital community expected to create more than 17,000 new jobs.
As a result vacancy rates have declined every quarter since Q1 2010 and are expected to fall to just 5% by the end of 2015 putting additional upward pressure on rents and reinforcing the need for quality workforce housing in Las Vegas.
“We are thrilled to be partnering with TruAmerica for a second time this year and believe that this property, in the context of strong and improving Las Vegas market fundamentals, offers a nice combination of consistent cash flow and upside potential through a targeted capital program,” said Brian Kelley, Principal in Investcorp’s Real Estate group.
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 $3.6 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.
Investcorp is a leading provider and manager of alternative investment products and is publicly traded on the Bahrain Bourse (INVCORP). The Investcorp Group has offices in New York, London, Bahrain, Saudi Arabia and Abu Dhabi. Investcorp has three business areas: corporate investment in the US, Europe and the Gulf, real estate investment in the US and global hedge funds. As at December 31, 2014, the Investcorp Group had approximately $11 billion in total assets under management (‘AUM’), including assets managed by third party managers where Investcorp receives fees calculated on the basis of AUM. Further information, including our most recent periodic financial statements, which details our assets under management, is available at www.investcorp.com.