TruAmerica and Investcorp Acquire 456-Unit Waterleaf Apartments in San Diego County for $86.2 Million
TruAmerica Multifamily and joint venture partner Investcorp have acquired the 456-unit Waterleaf Apartments in the North San Diego County suburb of Vista in an off-market transaction valued at $86.2 million.
With the acquisition of Waterleaf, TruAmerica has been involved in two of the largest multifamily transactions recorded in supply-constrained San Diego County in the past 18 months. TruAmerica also advised on the $81 million October 2013 acquisition of Plaza D’Oro, a 221-unit Class A apartment community in Oceanside.
Since being founded in July 2013 as a joint venture between industry veteran Robert Hart and The Guardian Life Insurance Company of America, TruAmerica has quickly built a new acquisition portfolio of 4,900 units valued at over $1 billion boosting its Western U.S. management portfolio to 13,000 units.
TruAmerica and Investcorp acquired the property from RedHill Realty Investors and AEW Capital Management.
“While the previous owners were good stewards of the property, Waterleaf remains an excellent value-add opportunity in a market with strong multifamily fundamentals,” said TruAmerica’s Senior Managing Director of Acquisitions Greg Campbell. “The property is located along the Highway 78 / Interstate 15 transportation corridor in one of the most desirable rental markets in North San Diego County. Waterleaf benefits from abundant drive-by traffic and proximity to shopping, recreation and several sizeable employment centers.”
Built in 1984 on a well located 20-acre site in northwest Vista, Waterleaf is a mix of one- and two-bedroom apartments ranging in size from 740 to 940 square feet, each with its own washer and dryer. The highly amenitized apartment community features a clubhouse, two pools/spas, fitness center, tennis and basketball courts, playground and pet park. The property was 97 percent leased at closing.
TruAmerica will undertake a multi-million dollar capital improvement program that will include common area upgrades and the completion of unit interior renovations that were started by the previous owner. Improvements will include faux-wood flooring, upgraded cabinets and countertops, and new appliance packages.
The acquisition fits well within TruAmerica’s strategy to invest in value-added multifamily properties in core Western US locations and reposition them as affordable high quality workforce housing.
“With a robust economy that continues to foster demand for quality housing, San Diego is one of the most fundamentally sound multifamily markets in the nation,” added Campbell. “Additionally, nearly half of the population is renters, compared to the national average of 35 percent among major metros.”
“We are pleased to be working with TruAmerica on this exciting opportunity, which aligns with our strategy of acquiring high quality properties with strong existing cash flows and potential upside opportunities,” said Brian Kelley, Principal in Investcorp’s Real Estate group.
The investment will benefit from attractive seven-year Freddie Mac fixed rate financing with full-term interest-only payments arranged by Trevor Fase and Mark Grace of Walker & Dunlop.
John Chu and Ed Rosen, Executive Directors with Cushman & Wakefield’s San Diego Multifamily Advisory Group, represented both parties in the transaction.
About TruAmerica Multifamily
TruAmerica Multifamily is a vertically integrated value-add multifamily investment firm based in Los Angeles. Founded in July 2013, TruAmerica has been one of the country’s most active multifamily investors focused on acquiring, managing and rehabilitating Class B or better multifamily housing in the Western part of the United States. The firm’s $2.5 billion management portfolio includes almost 13,000 units across prime locations throughout Northern and Southern California, Colorado, Arizona and Washington. 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 June 30, 2014, Investcorp had $11.4 billion in total assets under management. Further information, including our most recent periodic financial statements, which details our assets under management, is available at www.investcorp.com.