TruAmerica Makes First Foray on East Coast With MD Acquisition
- May 05, 2016
Baltimore—TruAmerica Multifamily, in partnership with MSD Capital LP, has acquired a 1,004-unit apartment portfolio in suburban Baltimore in an off-market transaction valued at $187 million. The deal represents an expansion of its geographical footprint to the East Coast for the L.A.-based TruAmerica.
The portfolio is comprised of the 158-unit Bayshore Landing in Annapolis, the 634-unit Sherwood Crossing in Eldridge, and the 212-unit Southfield in Nottingham. Each property includes such amenities as resort-style pool areas, clubhouses, fitness centers and other recreational facilities. The apartments were built between 1984 and 1990.
TruAmerica plans to complete an interior renovation plan initiated by the seller that includes faux-wood flooring, granite countertops, updated cabinetry and new appliance packages. The buyer’s plan also calls for various upgrades to common-area amenities.
Metro Baltimore is a growth market, with demand for apartments strong in recent years. The area has experienced 60 consecutive months of positive year-over-year employment growth, which is expected to continue with an average of 19,000 new jobs per year over the next five years.
Not only that, Baltimore is the top market in the United States for renting to Millennials, according to RealtyTrac. “This puts extraordinary pressure on, and underscores the need for, affordable quality rental housing to support that growth,” noted TruAmerica CEO Robert Hart.
TruAmerica’s portfolio that now totals more than 17,000 units. Previously, the company specialized in the acquisition and repositioning of mid-tier apartments in the Western United States, but with this acquisition, the company is growing its value-add platform to include East Coast growth markets.