DENVER, CO – TruAmerica Multifamily has bought in separate transactions, Loretto Heights, a 312-unit apartment community in Denver, CO for $72.25 million and Legends at Lake Mary, a 272-unit apartment community in Orlando, FL for $54 million.

Following an active 2018 with acquisition volume of nearly $1 billion, TruAmerica has now made more than $300 million in multifamily investments in the first two months of the year, including its first in the state of Georgia.  With Loretto Heights and Legends at Lake Mary, the Los Angeles-based multifamily investment firm increases its already substantial footprints in two of the strongest multifamily markets in the country, according to Head of Acquisitions and Co-Chief Investment Officer Matthew Ferrari. 

“Both Denver and Orlando benefit from sound multifamily fundamentals including continuing job and population growth, and a limited supply of new rental housing to meet demand,” said Ferrari. “The ability to buy both properties at a significant discount to new construction allows us to improve the properties to compete with higher priced product in the area, but still keep rents in line for our residents.”

TruAmerica now owns and operates five properties in Denver totaling approximately 2,000 apartments.

Built in 1988, Loretto Heights is located 15 minutes from Downtown Denver, which is home to 133,000 daytime employees and has experienced a 74 percent increase in tech employment since 2010.  It is also centrally located to a variety of major employers such as Oracle, United Healthcare, and TransAmerica. Denver has one of the most diverse economies in the country, with no major industry making up more than 18 percent of its total employment.

With only 61 of the 312 apartments fully upgraded, Loretto Heights, represents an attractive value-add opportunity.   In addition to bringing the remaining homes to fully renovated status with new stainless steel appliances, hard-surface flooring, stone countertops and modern lighting and plumbing fixtures, TruAmerica will upgrade the exterior and common areas to enhance the property’s overall curb appeal.  

HFF’s Denver office led by Jordan Robbins and Anna Stevens represented both parties in the transaction.   

As a Freddie Mac Select Sponsor, TruAmerica leveraged the acquisition with attractive financing through the agency’s 10-year floating rate program, arranged by Charles Halladay, Michael Gigliotti and Jamie Kline of HFF.  

Legends at Lake Mary is TruAmerica’s eighth asset in Orlando and increases its Florida holdings to more than 4,400 apartments. Other assets are located in Boynton Beach, Fort Myers and Tampa-Clearwater.

Legends at Lake Mary is a low-density community (8.3 homes per acre) located in one of the most affluent submarkets in the Orlando MSA.  Bordering the Timacuan Golf Club, the property features 18, two-tale wood frame buildings housing a mix of one-, two-and three-bedroom homes, each with an attached garage.

“Rising construction and land costs have made it economically unfeasible to replicate this type of property in the current market environment, which truly makes Legends at Lake Mary an irreplaceable asset,” added Ferrari.   

Over the last five years, Orlando has averaged job growth of 3.9 percent, far surpassing the national average.  Additionally, Orlando’s population grew by 17.6 percent from 2010-2017, making it the third fastest growing city in the country. 

While the property has been well maintained only a small percentage of the homes have been upgraded since its construction in 1997. In addition to full interior unit renovations including new appliances and modern finishes, TruAmerica also will make improvements to the community’s numerous amenities including the clubhouse, fitness center, tennis and volleyball courts, and pool areas in order to improve the quality of living for the residents. 

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ST PETERSBURG, FL – Walker & Dunlop announced that it structured $65,200,000 in financing for The Hermitage Apartment Homes. The property is a newly-developed, 348-unit, Class A apartment community in the heart of downtown St. Petersburg, Florida, one of Tampa Bay’s premier submarkets. Home to Florida’s Innovation District, the city contains a cluster of higher education, marine science, healthcare, business incubation, and media institutions, including Johns Hopkins All Children’s Hospital, Bayfront Health, and the University of South Florida St. Petersburg.

Alison Williams and Matt Baldwin, both Tampa-based members of Walker & Dunlop’s Capital Markets team, completed the debt transaction on behalf of the client, Brass Enterprises. Drawing on their extensive experience in financing multifamily properties, the team identified Freddie Mac as the ideal lender for the acquisition and structured the seven-year loan with an attractive interest rate and full-term interest-only payments.

Prior to the debt transaction, the property was marketed and sold for $107,625,000 by Brian Moulder and Chris Chadbourne of Walker & Dunlop Investment Sales, who represented the seller.

“We are very excited about the acquisition of a premier asset in one of the nation’s strongest and fastest-growing markets. The Hermitage is future-proof, boasting an unrivaled location in the heart of Downtown St. Petersburg’s Art District, high quality construction, and state-of-the-art, resort-style amenities,” commented Yisroel Weiser, Vice President of Brass Enterprises. “It was a pleasure working with the Walker & Dunlop team, led by Alison Williams. As always, fantastic service combined with smooth execution.”

Positioned across from a newly-built Publix, The Hermitage enjoys exceptional walkability to office buildings, restaurants, entertainment, museums, and abundant green space, including a seven-mile string of perfectly manicured parks. In addition to its unparalleled location, the highly amenitized community includes a rooftop resort style pool and hot spa, state-of-the-art gym, outdoor kitchen and sky deck, library and demonstration kitchen, pet spa, courtyard oasis with large outdoor fireplace, electric car charging stations, and an eight-floor gated resident parking garage. Units are outfitted with the latest finishes, furnishings, and fixtures.

“We have had the privilege of working with Brass Enterprises for the past seven years and this acquisition fits perfectly into its portfolio of luxury apartments in thriving submarkets. The project’s construction, luxury amenities, and exceptional walkability make it the preeminent community for residents of all ages,” said Ms. Williams.

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LOS ANGELES, CA – Common, the nation’s leading residential brand enhancing the quality of living for members and value of real estate for partners through convenience and community, today announced a seven-home, $100 million expansion in Southern California with Proper Development, making the duo the largest coliving operator and developer in Southern California. Over the next few years the partnership will bring more than 600 beds to Los Angeles alone, leading Common’s overall 1,500+ bed expansion in California. 

“Common is making a major commitment to Los Angeles, which is on track to be our second largest market after New York,” said Brad Hargreaves, founder and CEO of Common. “LA has a major shortage of purpose-built multifamily projects, but the city is rapidly growing, with the population expected to increase by one million people in the next two decades. We know that coliving is the solution to housing these new residents, and we are working with some of the best developers and investors to deliver community-focused, convenient, all-inclusive living at prices that are affordable for working professionals.”

Common and Proper Development’s first home in Los Angeles, Common Melrose, brought high-design and luxury living to LA at price points dramatically more affordable than getting a newly-built one-bedroom or studio in the same area. The home leased up in record pace, showing strong demand from a broad pool of renters who are increasingly priced out or paying an unsustainable part of their income on rent. For LA, Common and Proper Development see the need for rent prices to be competitive and accessible compared to other market-rate housing in the city.

“The urgency to develop market-rate housing at accessible price points is tremendous,” said Daniel Pourbaba, founder and CEO of Proper Development. “It’s increasingly hard to find accommodations in Los Angeles that can be supported by average and median income levels, especially for brand-new construction. By coupling Proper Development’s multifamily development program with Common’s coliving property management service, we are excited to deliver custom-built projects in the $1300-$1800 monthly rent range, with the added benefits of perfectly furnished and amenitized living.”

Leading developers and investors have taken note of the demand for coliving in the city. JAM Capital Real Estate, Justin Mateen’s Real Estate division has invested over $25 million in Proper Development’s coliving projects over the last few years with plans to double that figure to $50 million of investment this year. 

“Multifamily development has been slow to adapt to the needs of modern renters, but now that lenders are increasingly recognizing coliving as an attractive asset class, we are seeing an influx of institutional capital entering the market looking to co-invest with us,” said Justin Mateen, owner of JAM Capital Real Estate.

Common opened its first New York City home in 2015, and has since grown to serve 23 buildings in six markets, meeting their high consumer demand of 2,500 nationwide applications per week. With its rapid national expansion, Common recently announced a 223-bed home Common Addams, the largest coliving home in the Midwest. Common’s signature approach to end-to-end property management and technology allow the operator to deliver unparalleled experiences for residents looking for a stress-free, community-focused, and all-inclusive living. Rent at Common homes utilities, high-speed wi-fi, perfectly designed and furnished apartments, weekly cleanings of shared spaces, shared supplies, and hospitality-grade amenities. Everything from applying, paying rent, contacting staff, and plotting events with neighbors can be done seamlessly online through their purpose-built technologies.

Proper Development is a leader in creative, solution-oriented development. They expertly build residential, multifamily, and commercial projects with an unrivaled level of artistry and sophistication. Using advanced construction techniques and production building processes, their team is able to keep costs down and make perfectly crafted developments at more affordable prices.

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