TruAmerica Multifamily has made another significant multifamily investment in the Orange County market. The firm, in partnership with capital partner ASB Real Estate Investments on behalf of its Allegiance Real Estate Fund, has purchased a 251-unit apartment community in at 9580 El Rey Avenue in Fountain Valley, California, from an unnamed seller for $85.8 million, according to a statement released by a representative of TruAmerica.
The property, Corte Bella, is the Los Angeles–based buyer’s second significant Orange County investment in the past six months, having purchased a 264-unit apartment community in Huntington Beach for $90.5 million in February, the release says. Both transactions represented some of the largest single-asset multifamily acquisitions in Orange County so far this year, according to the statement.
Comprising 33 two-story buildings, Corte Bella was built in 1969 and is located on an ultra-low-density 12-acre site, the release says. Featuring a combination of one- and two-bedroom apartments, the community offers private garages and common-area amenities that include seven swimming pools, a fitness center, a dog park, courtyards, and barbecue picnic areas. The statement adds that the community was 97 percent occupied at the time of closing.
In the release, Aaron Duncan, SVP of ASB, is quoted as saying, “Working with TruAmerica we plan to upgrade units and take advantage of the property’s unique amenities to maintain high occupancies and solidify rent levels in one of the country’s most favorable and desirable multifamily investment markets.”
The release goes on to say that capital-improvement program, which will cost several million dollars, will include installing new washer/dryer connections in each of the apartments to allow for the conversion of nine existing laundry facilities to a variety of new tenant amenities including a business center, pet spa, and bike storage.
TruAmerica’s director, Zach Rivas, who led the firm’s acquisition team, is quoted in the statement as saying, “Fountain Valley is a highly desirable, centrally located Orange County submarket, with a severe shortage of modern rental housing, making Corte Bella a compelling investment opportunity.” He adds that a high percentage of the 4,200 multifamily units in Fountain Valley were built before 1980, and there is very little supply coming on line due to high barriers to entry in the market.
The release also says that the acquisition was leveraged with 10-year financing through Freddie Mac’s select sponsor program, which was arranged by Mitch Clarfield, senior managing director of Berkley Point.
According to the statement, TruAmerica owns more than 36,000 apartment units across the county and that the firm has acquired $750 million in multifamily assets, totaling 4,000 units, over the past 12 months, with nearly one-third in the Southern California area.
As SoCal Real Estate reported in August, TruAmerica, in partnership with a partnership of Boston-based Intercontinental Real Estate Corporation, acquired a 527-unit apartment complex in La Mesa, California, called Alterra & Pravada from a partnership of Fairfield Grossmont Trolley LLC and Metropolitan Transit Authority, a public agency. While the price was not disclosed, the trade was said to be one of the largest multifamily trades in San Diego County so far this year.