TruAmerica, Blackstone Buy 608-Unit Portfolio for $97M

For their second deal since forming a joint venture last year, the partners picked up a 368-unit community in central Las Vegas for $58 million, along with a 240-unit asset west of Atlanta.
Vintage Pointe. Image courtesy of TruAmerica multifamily

TruAmerica Multifamily has teamed up with institutional partner Blackstone Group to acquire two apartment properties totaling 608 units in the Las Vegas and Atlanta metro areas, in an off-market portfolio deal valued at $96.7 million. Although the identity of the partner was not disclosed, Yardi Matrix data indicates that Blackstone Group invested in the Las Vegas asset, which changed hands for $58 million.

The deal marks TruAmerica’s second investment with Blackstone, after forming a joint venture in January 2018 that scooped up a 635-unit multifamily portfolio of assets in the Denver and Seattle metros for about $127 million. In the latest acquisition, the duo picked up the 368-unit Vintage Pointe in Las Vegas and the 240-unit Sweetwater Creek in Lithia Springs.

The seller was InterCapital Partners. The joint venture will invest millions of dollars in capital improvements to reposition both properties and bring them in line with the competitive set in each market.

Buying into NV, GA

Built in 1994, Vintage Pointe is located at 6500 Vegas Drive in central Las Vegas and is 94.5 percent occupied, according to Yardi Matrix data. InterCapital Partners bought the asset from Bascom Group in 2017 for $49.4 million, not long after Bascom Group bought it from Camden Property Trust in 2016.

Sweetwater Creek is located at 1100 Preston Landing Circle in the unincorporated Lithia Springs area in northeastern Douglas County, west of Atlanta. Built in 2003, the community is 95 percent occupied. InterCapital Partners bought the property in 2018 from First Management Communities. The asset had previously changed hands in 2004, 2007 and 2015.

TruAmerica continues deal binge

The two-property deal extends an acquisition streak by TruAmerica, which has invested nearly $500 million in value-add apartment assets with its institutional capital partners in Florida, Georgia, Nevada and Colorado this year alone.

The latest deal brings the multifamily investor’s portfolio to 4,000 units in Las Vegas and four properties totaling nearly 1,400 units in the Atlanta area. Last month, TruAmerica picked up a 448-unit community in the Atlanta suburb of Lawrenceville after making its debut in the metropolitan market this year. The company also picked up a 400-unit community in Las Vegas for $61.7 million in January.

Founded in 2013, the TruAmerica now has an $8.5 billion portfolio spanning about 40,000 units across 10 states. The company, which specializes in repositioning Class B assets, announced a flurry of new appointments last year as part of a drive to build up its national platform.