TruAmerica and Investcorp Team Up for Fourth Acquisition
- May 06, 2016
Phoenix–TruAmerica Multifamily is hot off the heels of its largest multifamily purchase in the Phoenix MSA. The value-add-focused investment firm completed the acquisition of Little Cottonwoods in Tempe for a total of $56.7 million, as part of a joint venture with Investcorp that has translated into four different acquisitions over the past 15 months.
Located at 1820 East Bell De Mar Drive in the Tempe submarket, Little Cottonwoods consists of 379 residences. TruAmerica acquired the property from The Bascom Group, adding it to its Phoenix-area portfolio that includes Trevi in Chandler and Avenue 25 in North Phoenix.
Built between 1985 and 1991, the community offers a mix of one-, two-, and three-bedroom units. The 31 two-story, garden-style buildings are located on a 19.72-acre site. According to Yardi Matrix, residents at Little Cottonwoods pay an average rent of $1,005 and are granted access to an amenity package that includes three resort-style swimming pools, a 24-hour fitness center, a cluhbhouse and a picnic area.
Brian Kelley, principal with Investcorp’s Real Estate Group, noted that the transaction total is below the current replacement cost, as well as similar deals being perfected in the metro at this time. The new owner is looking to implement a capital improvements plan that will include new flooring, under cabinet lighting, appliance packages and upgraded cabinetry.