TruAmerica Multifamily (TruAmerica) has increased its footprint in some of the strongest multifamily markets in the United States after closing last week on garden-style communities in Las Vegas, Nevada; Tampa, Fla.; and Salt Lake City, Utah in three separate transactions totaling $209 million.
Combined, the properties, total nearly 1,000 apartment homes and increases the Los Angeles-based value add multifamily investment firm’s portfolio to more than 45,000 units.
Florida, Nevada and Utah, which represent approximately 25 percent of TruAmerica’s portfolio, are among the most fundamentally sound multifamily markets in the U.S. exhibiting solid wage, population and employment growth, according to Co-Chief Investment Officer Matthew Ferrari. “Much of this is due in large part to the migration of corporations and families that follow them to these lower-cost-of-living states.”
The three properties, built between 1985 and 1995 represent an attractive value-add opportunity as each will benefit from TruAmerica’s targeted and accretive improvements to the interiors, exteriors and amenity spaces.
The largest of the three communities is the 396-unit Stillwater Palms which is located at 2480 Cypress Pond Road in Palm Harbor, 23 miles west of Tampa, Fla. Stillwater Palms benefits from several significant demand drivers, according to Ferrari. “As one of Florida’s leading business centers with a world-class port, airport, and massive medical community, the Tampa MSA is home to renowned financial, insurance, and IT companies, including the headquarters of numerous Fortune 500/1000 companies. The metro is the western gateway to Florida’s Interstate-4 high tech corridor that spans 13 counties and is also recognized for its burgeoning post-secondary education system.”
Vida is a 252-unit garden style community on 4.64 acres at 560 Hacienda Ave in Las Vegas two miles west of the world-famous Las Vegas Strip. Located in one of the city’s preferred residential areas, Vida’s Southwest submarket has added nearly 60,000 new residents since 2010, with many residents opting to rent versus buy due to surging home prices.
“Renting remains especially affordable compared to owning a home in Las Vegas,” said TruAmerica Senior Director Zach Rivas who oversees TruAmerica’s acquisition efforts in the market. “The average rent produces a comparably low average rent-to-income ratio of less than 25 percent resulting in a higher propensity for residents to rent.”
Falls at Hunters Pointe is a 276-unit community located at 11251 South State Street in Sandy, Utah. It is easily accessible to major shopping centers, the Interstate 15 highway, two UTA TRAX light-rail stations, and The Silicon Slopes, Utah’s technology employment hub. Its proximity to The Silicon Slopes is especially valuable given the increasing importance of the tech sector in Utah’s job market.
“Sandy is one of the most sought-after communities in the Salt Lake City Metro, positioned squarely in the hot bed of The Silicon Slopes and Falls at Hunters Pointe is one of the best located properties in the submarket,” said TruAmerica Associate Director Wesley LaBar who led the firm’s acquisition effort. “It is rare to find a suburban garden-style community that is walkable to so many entertainment, shopping and recreational options.”