TruAmerica Multifamily Acquires Northern California 180-Unit Community
- Jul 08, 2014
Fairfield, Calif.—TruAmerica Multifamily has acquired Summit at Paradise Valley, a 180-unit apartment community in Fairfield, Calif., for $26 million.
The transaction was completed in partnership with Intercontinental Real Estate Corporation and benefits from an attractive seven-year agency financing with full-term interest only payments arranged by Capital One Commercial Bank.
“We saw this as a renovation opportunity, as most of the units were in original condition. They had been maintained over time, but the finishes were dated,” Greg Campbell, TruAmerica’s director of acquisitions, tells MHN. “We also liked some of the economic and demographic factors of Fairfield; a very tight submarket with only 2 percent vacancy rate with multifamily properties and nothing new under construction at the moment.”
Summit at Paradise Valley consists of 22 buildings on nearly 15 acres and features expansive one- and two-bedroom floor plans, which include enclosed garages on first floor units.
The apartment community is comprised of two- and three-story structures set on an idyllic hillside and according to Campbell, residents have access to a number of great outdoor amenities, including a pool area, al fresco kitchen and a nearby dog-friendly walking path.
Unlike other assets in the area, Summit at Paradise Valley is part of a fully walkable neighborhood, with a major retail and entertainment center sited across the street.
“This is in the newer side of Fairfield, with newer retail and easy access to the I-80 right there,” Campbell says. “The market conditions, coupled with a desirable location in close proximity to major employment centers and freeways, make Summit at Paradise Valley an excellent value-add investment opportunity.”
The previous owner had renovated 20 of the units, but TruAmerica will be making major renovations on the remaining 160, including refreshing the two-level fitness center, leasing office, clubhouse and other outdoor recreational areas. Interior upgrades to the units will include modernized flooring and color palettes and contemporary kitchens.
“We think there will be operational improvements as well,” Campbell says. “We are bringing in an experienced management team, which has done a lot of these renovation-type deals, and are looking at opportunities for better efficiency.”
TruAmerica’s acquisition pace has resulted in 11 new acquisitions valued at over $577 million in its first year of operation. With this transaction, TruAmerica has now acquired three multifamily assets representing nearly $103 million in investment value in the greater Bay Area over the last nine months. Previously, it has purchased Avenel Apartments in San Jose and The Vineyards in Gilroy, which were acquired in October and December 2013 respectively.