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TruAmerica Multifamily is a Los Angeles-based multifamily investment firm that specializes in the acquisition and renovation of large class B apartment properties across the United States. Since its founding in 2013 by real estate investor Robert E. Hart, the company has acquired and/or asset manages a portfolio of approximately 33,000 apartment units valued at roughly $7 billion.[1][2]
History
TruAmerica was formed in 2013 by a partnership between Hart and The Guardian Life Insurance Company of America.[1]Hart owns 20 percent of the company and Guardian owns the remaining 80 percent. Hart founded the company after leaving Kennedy Wilson, a global real estate company where he served for 13 years as President and CEO of its multifamily management group.[3] Since its founding, TruAmerica has largely focused on investing in and renovating older mid-level or “Class B” garden style and midrise apartment communities to attract a segment of the population that rents out of necessity. These properties are located in first or second ring submarkets outside major metros areas and employment hubs.[1]
In 2015, TruAmerica partnered with Guardian and Allstate to purchase a 14 property apartment portfolio in Southern California for $482 million.[4] While mid-level apartments remain its main focus, TruAmerica has also made investments in luxury properties. In 2016, it purchased Millennium Woodland Hills, a luxury apartment community in Los Angeles, for $163 million.[5] In its first years of existence, TruAmerica focused on investments in major metro areas throughout the western U.S., including Northern and Southern California, Salt Lake City, Las Vegas, NV, San Diego, Phoenix, Denver, Portland, OR and Seattle.[6][2] In June 2016, the firm made its first investment East of the Rocky Mountains with a $187 million acquisition of a 1,004 unit apartment portfolio in Baltimore and Annapolis. It opened an East Coast office in Arlington, Virginia in September 2016 to support its increasing investment activities in select East Coast markets.[7] Shortly thereafter, it partnered with Ares Management to purchase a 1,402-unit portfolio in the Baltimore area.[8]
In 2017, it made a series of investments in Florida. In June 2017, TruAmerica partnered with InvestCorp to purchase two apartment complexes totalling 708 units in Orlando, Florida for $98 million.[9]In September it partnered with MSD Capital, the investment firm founded by Michael Dell, the founder of Dell Technologies, to purchase a $66 million apartment complex in Fort Myers, Florida.[10]In October it partnered with an unidentified investor to buy a 300-unit apartment complex in Orlando for $47.7 million.[11] At the end of 2017, 15 percent of the company’s portfolio was located in Maryland and Florida and it signaled plans to make major investments in other mid-Atlantic and southern states.[12]
- ^ a b c Morris, Keiko (December 26, 2017). "Investors pile into suburban rental housing". Wall Street Journal.
- ^ a b Showly, Roger (January 13, 2015). "Low vacancy means rising rents in SD". San Diego Tribune.
- ^ Taves, Max (January 27, 2015). "TruAmerica makes bet on upgrading Southern California apartments". Wall Street Journal.
- ^ Vincent, Roger (January 22, 2015). "Los Angeles firm buys 14 apartment complexes for $482 million". Los Angeles Times.
- ^ Khouri, Andrew (January 5, 2016). "Warner Center apartments are bought by L.A. firm for $163 million". Los Angeles Times.
- ^ Segall, Eli (September 16, 2016). "LA investors pay $80 million for Las Vegas rental properties". Las Vegas Review-Journal.
- ^ Odagescu, Bogdan (September 14, 2016). "TruAmerica opens East Coast office, taps new director". Multi-Housing News.
- ^ Sherman, Natalie (November 14, 2016). "Ares, TruAmerica acquire MD apartment portfolio". Baltimore Sun News.
- ^ "Joint venture pays $98M for Orlando rentals". The Real Deal. June 4, 2017.
- ^ McQuaid, Kevin (August 25, 2017). "Southwest Florida complexes trade for $137 million". Business Observer.
- ^ "TruAmerica buys its 5th apartment property in Florida this year". The Real Deal. October 22, 2017.
- ^ "TruAmerica continues national expansion with $47 million apartment acquisition in Orland". Multi-Family Biz. October 18, 2017.