TruAmerica Expands in Georgia

The company teamed with Tokyu Land US Corp. to acquire two Atlanta communities in separate transactions totaling $127.35 million.
Prato at Midtown

A joint venture between TruAmerica Multifamily and Tokyu Land US Corp., has acquired two Atlanta, Ga.-based apartment communities, in separate deals, for a total of $127.35 million.

“Both properties are well located with the ability to implement varying levels of renovations to improve upon the previous owners’ business plan,” Matthew Ferrari, TruAmerica senior managing director of acquisitions & co-chief investment officer, said. “Additionally, both assets were being sold by sellers that we had previously transacted with which provided an extra level of comfort for both parties.”

The first acquisition was Vinings Corner, a 360-unit community located at 2101 Paces Ferry Road S.E. in Smyrna, which is situated in one of Atlanta’s top employment centers. Originally constructed in 1983, the property will undergo extensive renovations and will be rebranded as Junction at Vinings. The community offers one- and two-bedroom units, and will be upgraded with stone countertops, cabinet faces and new appliances. New plumbing and lighting fixtures are also planned. The exterior will also get a slight makeover, with planned changes to the pool, fitness center and dog park.

A second deal involved the acquisition of The Prato at Midtown, a 342-unit Class B property located at 400 Central Park Place, N.E. in the Old Fourth Ward, one of Atlanta’s fastest growing neighborhoods. This property will also undergo similar renovations and enhancements, with work done on both interiors and exteriors.

“Prato’s program will be slightly more modest given the previous owner’s business plan,” Ferrari said. “However, we still plan to renovate the clubhouse, enhance landscaping and exterior components and implement a modest kitchen and bath renovation program.”

Hot-lanta

The deals mark TruAmerica’s first foray into the state of Georgia, after finding success in the Southeast in Florida, where it opened a regional office. The company’s Florida portfolio includes approximately 4,000 units in cities such as Orlando, Fort Myers, Palm Beach and Tampa.

“Atlanta has many of the same characteristics as the other markets that we invest in—strong job and population growth, favorable demographic tailwinds and a friendly business climate,” Ferrari told MHN. “Additionally, Atlanta is a very liquid market having $7 billion in apartment transactions in 2018.”

According to Ferrari, both Prato at Midtown and Junction at Vinings are in strong, albeit very different submarkets. 

“Prato is in the Old Fourth Ward neighborhood which has seen a transformation and strong growth over the last few years. The asset is low density in an urban setting with rapid development occurring all around it,” he said. “Vinings is in a strong suburban location in close proximity to strong job centers including Home Depot’s headquarters, great schools and convenient highway access.”

Both transactions were helped with attractive 10-year financing from Freddie Mac arranged by Brian Eisendrath of CBRE Capital Markets, Inc. and Trevor Fase and Russell Dey of Walker & Dunlop. CBRE Southeast Multifamily’s Vice Chairman Kevin Geiger marketed Vinings Corner on behalf of the seller. JLL’s Managing Directors David Gutting and Derrick Bloom marketed Prato at Midtown on behalf of the seller. 

Earlier this month, TruAmerica Multifamily acquired Tesoro Ranch, a 400-unit community in Las Vegas’ Henderson East submarket for $61.7 million.

Image courtesy of TruAmerica Multifamily