TruAmerica Multifamily, which owns and operates nearly 2,000 multifamily units in Phoenix AZ, has acquired 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 planned within three miles of the property. This has created 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 plan will include the renovation of all unit interiors as well as targeted improvements to exteriors and amenity spaces to create 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.
About TruAmerica Multifamily
TruAmerica Multifamily is a vertically integrated, value-add multifamily investment firm based in Los Angeles. Founded in July 2013 as a joint venture between Robert Hart and The Guardian Life Insurance Company of America, TruAmerica has been one of the country’s most active multifamily investors and manages an $8.7 billion portfolio of approximately 40,000 units across prime locations throughout Northern and Southern California, Washington, Oregon, Colorado, Arizona, Nevada, Utah, Maryland, Florida and Georgia.