LOS ANGELES, CA (July 1, 2014) –TruAmerica Multifamily, the investment firm formed by industry veteran Robert E. Hart and The Guardian Life Insurance Company of America, continues its targeted Bay Area expansion with the acquisition of Summit at Paradise Valley, a 180-unit apartment complex in Fairfield, Calif. for $26 million. The transaction was completed in partnership with Intercontinental Real Estate Corporation and benefits from attractive sevenyear agency financing with full-term interest only payments arranged by Capital One Commercial Bank.
“Fairfield is somewhat of an undiscovered submarket where current conditions offer a tremendous investment opportunity,” says Greg Campbell, Director of Acquisitions at TruAmerica. “Rent growth in Vallejo-Fairfield is trending upwards in a pretty big way, and the submarket is ranked in the top 6 percent nationally in terms of vacancy projection for the next five years. At present, there are no new multifamily developments under construction in Fairfield, and ground-up development is very costly in the region’s current economic environment. The market conditions, coupled with a desirable location in close proximity to major employment centers and freeways, make Summit at Paradise Valley an excellent valueadd investment opportunity.”
The 180-unit apartment complex consists of a mix of expansive one- and two-bedroom floor plans, which include enclosed garages on first floor units. Totaling 22 buildings on nearly 15 acres, the apartment community is comprised of two- and three-story structures set on an idyllic hillside. Distinguishing the property from other apartment communities in Fairfield, Summit at Paradise Valley offers residents a fully walkable neighborhood created by the major retail and entertainment center sited across the street. Residents will have access to abundant outdoor amenities—including a pool area, al fresco kitchen and a nearby dog-friendly walking path—to further embrace Northern California’s indoor/outdoor lifestyle.
TruAmerica plans to perform interior and exterior upgrades to bring the 1990s property more in line with competitors, which are commanding some of the highest rents in the submarket. For a property of its size, Summit at Paradise Valley offers a wide variety of common areas. TruAmerica will refresh the two-level fitness center, leasing office, large clubhouse, pool area that will include an outdoor kitchen and additional outdoor recreational areas. Interior upgrades to the units, some of which are in original condition, will include modernized flooring and color palettes and contemporary kitchens. To capitalize on the demand for superior, well-located housing, TruAmerica will also implement a number of operational improvements at the property.
Fairfield, the midpoint between San Francisco and Sacramento, provides a short commute to major employment centers throughout the East Bay and Sacramento. In addition, the city serves as home to Travis Airforce Base, the city’s largest employer with an economic impact of more than $1 billion annually. “The region’s strong market fundamentals and deep renter pool make this investment extremely attractive,” said Jessica Levin, Director of Acquisitions at Intercontinental Real Estate Corporation. TruAmerica plans to capitalize on the property’s proximity to highly trafficked Interstate 80, which is approximately one half mile away, by aggressively marketing to top employers throughout the region.
TruAmerica has now purchased three multifamily assets representing nearly $103 million in investment value in the greater Bay Area over the last nine months. The other two Bay Area properties are Avenel Apartments in San Jose and The Vineyards in Gilroy, which were acquired in October and December 2013 respectively. TruAmerica’s impressive acquisition pace has resulted in eleven new acquisitions valued at over $577 million in its first year of operation.
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 management portfolio includes more than 11,000 units across prime locations throughout Northern and Southern California, Colorado and Washington. For more information on TruAmerica Multifamily, visit www.truamerica.com or call (818) 290-5770.
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 $6 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 for more information.