PHOENIX, AZ – TruAmerica Multifamily, which owns and operates nearly 2,000 multifamily units in Phoenix AZ, has bought Covington Park, a 520-unit garden-style apartment community for $77.26 million.

Built in 1999, Covington Park is located in Phoenix’ Northwest Corridor. It is one of the newest communities in the submarket, with much of the surrounding inventory built in the 1970s and 1980s. Despite the continuing influx of new residents seeking job opportunities, no new multifamily communities are under construction or plotted within three miles of the property. This has made a severe supply/demand imbalance, according to TruAmerica Director of Acquisitions Chris MacLeod who led the acquisition team.

“Demand for multifamily housing throughout metro Phoenix continues to be driven by robust employment and population growth,” MacLeod said. “Phoenix was the top performing employment market in the Western U.S. in 2018, adding 65,000 jobs, trailing only New York and Dallas over a two-year span. The MSA is projected to add 118,000 new residents annually through 2026.  We continue to view Phoenix as one of the top markets in the United States for multifamily investment.” 

Covington Park features a mix of one-, two- and three-bedroom homes with nine-foot ceilings, private balconies or patios, walk-in closets, and washer/dryers. Common area amenities include a three-acre community park, lighted basketball and volleyball courts, three swimming pools, a playground, a newly renovated fitness center, a dog park, a resident clubhouse, and package receiving lockers. The Property also includes 105 detached garages.

The property represents a strong value-add opportunity as 100 percent of the apartments are in their original condition. TruAmerica’s multimillion-dollar capital improvement plot will include the renovation of all unit interiors as well as targeted improvements to exteriors and amenity spaces to make a highly differentiated product among the competitive set in the market that meets the ongoing demand for quality, affordable multifamily housing.    

The acquisition was leveraged with 10-year floating rate financing through Freddie Mac’s Multifamily Green Advantage platform arranged by CBRE Capital Markets Vice Chairman Brian Eisendrath. 

Tyler Anderson, Asher Gunter, Sean Cunningham and Matt Pesch from CBRE’s Arizona office marketed the properties on behalf of the seller.

TruAmerica Multifamily is a vertically integrated, value-add multifamily investment firm based in Los Angeles, and is one of the country’s most active multifamily investors and manages an $8.7 billion portfolio of approximately 40,000 units.

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SAN DIEGO, CA – Davlyn Investments, a prominent California multi-family and commercial property investment firm, recently closed escrow on the $60,000,000 “off-market” buy of Metro Gateway, a newly-built, 187-unit, luxury, Class A+, “Core” multi-family community in Riverside, California.  Metro Gateway was constructed in 2017 and is Davlyn’s eleventh acquisition in Southern California’s Inland Empire.  The JLL team of Sean Deasy and Ryan Fitzpatrick represented the seller, MBK Rental Living.  Ryan Blair with City National Bank arranged financing.

Aaron Pacillio, Chief Investment Officer of Davlyn, described the investment as follows, “Metro Gateway presents the opportunity to buy Riverside’s first and only truly transit-oriented apartments.  The property is adjacent to the Riverside-La Sierra Metrolink rail station, which is second only to Los Angeles’s Union Station in ridership, thus saving our residents from onerous commutes into neighboring markets.  Further promoting the property’s appeal is its walkability to multiple neighborhood grocers and restaurants.  Its best-in-class amenity offering and unit finishes enhance the community’s desirability to Riverside’s growing ‘lifestyle’ renter segment.”  He added, “Ultimately, Metro Gateway’s new vintage, attractive location and unique market position will promote strong rental growth and reduce exposure to major capital expenditures during our investment period.”

Jon Williams, CEO of Davlyn Investments, stated that, “Increasing living and business costs in Los Angeles and Orange County are driving businesses and households to the Inland Empire in droves.  Its population growth of 9.4% since 2010 bears this out.  Metro Gateway’s southwest Riverside address uniquely situates it between the Los Angeles, Orange County and Inland Empire employment markets, thus allowing it to capture these demographic changes.  With immediate access to the 91 Freeway and adjacency to the Riverside-La Sierra Metrolink station, this location provides a strategic advantage for residents looking to facilitate their commute to neighboring regions.  Accordingly, this acquisition is consistent with our long-term investment strategy to expand our presence in the Inland Empire.”

Metro Gateway follows Davlyn’s recent $34.8 million acquisition of The Summit in Chino Hills, CA.  Davlyn Investments is a San Diego-based owner/operator of apartment communities and office buildings throughout California. Since Its founding, the firm has bought in excess of $1.3 billion in real estate assets.  The company is headed by Jon Williams and Paul Kerr.

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KANSAS CITY, MO – Cohen-Esrey Apartment Investors, a unit of Overland Park-based Cohen-Esrey, LLC, has bought five market-rate apartment properties totaling 1,490-units in Olathe, KS, Dallas, TX, Ft. Worth, TX, Marietta, GA and North Port, FL. 

The firm also sold a property in Erie, PA. Last fall, Cohen-Esrey bought The Edge Apartments at 12251 South Strang Line Road in Olathe, and has renamed the 352-unit property, Jefferson on the Lake. The firm closed on Lofton Place, a 258-unit property in Ft. Worth in April 2019, as well as the 372-unit South Pointe Apartments in Dallas. Other acquisitions include the 196-unit Hamptons at East Cobb in the Atlanta suburb of Marietta, and the 312-unit Lakes at North Port, in the Sarasota, FL, suburb of North Port. 

These five acquisitions bring the owned-portfolio of Cohen-Esrey Apartment Investors to 5,045-units in 17 properties. Other markets include San Antonio, Memphis, Oklahoma City, Lincoln, NE, Columbus, OH and Atlanta, GA. In Erie, PA, Cohen-Esrey sold the Boston Store Apartments, a 125-unit historic downtown building it bought in 2012. The total value of the six transactions exceeds $184 million. The firm has another 350-unit property under contract with an expected closing in October 2019. Counting properties sold in recent years, Cohen-Esrey has bought 6,252-units at a total cost of more than $550 million.

Cohen-Esrey has been accelerating its apartment acquisition efforts since 2016, targeting larger metropolitan areas with strong job and population growth. Assets have been constructed from the mid-1980s to 2010 and generally require some level of physical improvements and repositioning. Often, amenities are enhanced along with unit interiors including kitchens, flooring and bathrooms. 

Ryan Huffman is the managing director for Cohen-Esrey Apartment Investors and said, “Demographic trends continue to drive demand for apartments across the country. As Baby Boomers retire, many are moving into apartments. And Millennials are choosing to live in apartments longer than previous generations. These two massive age cohorts are making significant pressure on rental housing stock and the industry has been unable to keep pace with the demand.”

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