LOS ANGELES, May 26, 2015 –TruAmerica Multifamily, in partnership with an institutional investor, has acquired Crossing at Daybreak, a 315-unit Class A apartment home community in South Jordan, UT, marking the Los Angeles-based real estate investment firm’s entry into Utah and its continued expansion across the major Western U.S. urban markets.
TruAmerica has rapidly expanded its portfolio holdings in metro Seattle, Denver, Northern and Southern California with plans to acquire properties in both Portland and Las Vegas in the very near future.
“We’ve been eyeing the Salt Lake City market for some time, looking for the right opportunity,” said TruAmerica Senior Managing Director Greg Campbell who led the acquisition team. “The Salt Lake City metro demonstrates some of the strongest multifamily fundamentals in the United States and there are no signs of it letting up.”
Salt Lake City is one of the fastest growing cities in the country and with an unemployment rate of only 3% and 45,000 new jobs expected to be created by the end of 2016, the economic outlook is extremely favorable, according to Campbell. Drawn by an increasing number of job opportunities and Utah’s livability factor, the state also has become a magnet for millennials and is the nation’s youngest state in terms of median age (31.2) with 32 percent of its population under the age of 32.
“This millennial demographic is more likely to rent than buy a home especially in and around Salt Lake City, which is one of the most affordable rental markets in the nation.” said Campbell.
Built in 2011 by the seller Western National Properties, Crossing at Daybreak features a mix of one-, two- and three-bedroom apartment homes and is the only multifamily development in the renowned 4,200-acre master planned community of Daybreak, located 18 miles south of Salt Lake City. Each unit features gourmet kitchens with high-end finishes, hardwood floors, and 9-foot ceilings. Situated on 14-acres, the low-density garden style community is highly amenitized with a resort-style pool, spa and cabana; resident lounge; game room; 24-hour fitness center; and picnic and barbecue areas. Still, TruAmerica plans on investing up to $1 million into the property, which would include light unit interior enhancements and in-unit Wi-Fi, a dog wash station and upgraded landscaping.
“This was a rare opportunity to acquire an institutional grade core asset that requires very little capital re-investment yet we see a real value creation opportunity by leveraging our asset management platform to improve operational inefficiencies,” added Campbell.
TruAmerica’s investment will benefit tremendously from 5-year interest only, 2.15% floating rate, agency debt financing, arranged by Allan Freedman and Ed Zimbler of Berkadia, which should generate double digit cash-on-cash returns for its investors.
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 $3.5 billion portfolio of more than 16,500 units across prime locations throughout Northern and Southern California, Washington, Colorado, Arizona and Utah. For more information on TruAmerica Multifamily, visit www.truamerica.com or call (424) 325-2750.