Dive Brief:

• TruAmerica Multifamily has added five suburban apartment communities representing nearly 1,500 units to its portfolio, according to a press release from the company shared with Multifamily Dive. The purchase price was not disclosed.
• The Los Angeles-based multifamily owner secured the properties in Columbus, Ohio; Orlando, Florida; and Phoenix in three separate transactions. The company, ranked No. 29 on the National Multifamily Housing Council Top 50, now owns 25 properties in Florida, 12 in Arizona and two in Ohio.
• In 2021, TruAmerica bought $4 billion worth of assets, ranking it as the No. 9 buyer in the country, according to MSCI. In addition, the company will add at least another $1 billion of apartments in 2022, CEO and President of TruAmerica Bob Hart told Multifamily Dive.

Dive Insight:

In the largest transaction of its recent deal spree, TruAmerica in partnership with funds from Oaktree Capital Management acquired a three-property, 981-unit portfolio. The properties, built between 2015 and 2017, have a mix of floor plans ranging from studio to three-bedroom apartment homes. They are:

• The 314-unit Linden Crossroads in Orlando.
• The 449-unit Linden Audubon Park in Orlando.
• The 218-unit Luxe Scottsdale in Phoenix.

“Sun Belt markets from coast to coast, including Phoenix and Orlando, are seeing robust multifamily volumes borne of strong market and sector fundamentals, which have translated to impressive durability even through a pandemic and a rising interest rate environment,” said TruAmerica Co-Chief Investment Officer Matthew Ferrari, who led the acquisition team, in the press release.   

In a separate transaction, TruAmerica added Olde Mill Lakes, a 264-unit apartment property in the Columbus suburb of Dublin, Ohio. The property, built in 1988, features one- and two-bedroom units averaging approximately 1,054 square feet.   

Finally, TruAmerica acquired Park at Napoli, a 238-unit apartment property in the Orlando suburb of Winter Park, Florida. The garden-style community, built in 1986, features a mix of one-, two- and three-bedroom floorplans at an average unit size of approximately 850 square feet. TruAmerica said it will address deferred maintenance issues and renovate apartment interiors and common areas at this property.

Hart still sees strong runway for rent growth in the market through renovation. “People are willing to pay because they understand there is still undersupply,” he told Multifamily Dive. “So the overall economic formula for growth in multifamily is still very good in a nation that is underhoused, has smaller houses and older housing stock.”

Despite the frothy market over the past two years, TruAmerica has been able to find value in the market. “There are always times-up situations [when an owner is forced to sell],” Hart told Multifamily Dive. “And that creates opportunity,” 

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