TruAmerica Buys $91M CA Community
- Feb 22, 2018
TruAmerica Multifamily has acquired Pacific Shores, a 264-unit apartment community in Huntington Beach, Calif., from affiliates of UDR Inc. for $90.5 million. Located at 7701 Warner Ave., the property features a mix of one- and two-bedroom units with washer and dryers, private balcony or patios, and walk-in closets.
TruAmerica said it will immediately begin a multimillion-dollar capital improvement program to further the moderate unit interior renovation started by the seller. It also will undertake a complete overhaul of 74 units that have been virtually untouched since the property was constructed in 1970.
Unit improvements will include new stone countertops with under mount sinks, kitchen backsplash and cabinet doors. Upgrades to the property’s common amenities and exterior will include improvements to the pool and spa area, dog park and fitness center, as well as new signage, landscaping, lighting and outdoor barbecue area.
Competition Fierce to Buy Even Class B Properties
According to the buyer, Pacific Shores represents a value-add investment. TruAmerica specializes in Class B multifamily assets that can benefit from renovation while keeping rents affordable for working families and individuals.
“The competition for this property was extremely fierce,” said Greg Campbell, TruAmerica senior managing director of acquisitions and dispositions. “Huntington Beach is a high-barrier- to-entry market, and the opportunity to acquire an institutional- quality asset is difficult to find here.”
TruAmerica’s acquisition was leveraged with seven-year agency financing through Freddie Mac’s select sponsor program. The financing was arranged by Berkeley Point Capital Senior Managing Director Mitch Clarfield. Eastdil Secured marketed the property on behalf of the seller.