TruAmerica Pays $77M for Phoenix Apartments
- Aug 02, 2019
TruAmerica Multifamily has purchased Covington Park, a 520-unit community in Phoenix, for $77.2 million.
The property, located at 2902 W. Sweetwater Ave., was built in 1999 and offers one- to three-bedroom units. Covington Park boasts an occupancy rate of 98 percent with average rents at $1,014, according to Yardi Matrix data.
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While the apartments feature walk-in closets, washer/dryer units and private balconies or patios, the property offers a long list of amenities including a three-acre community park, lighted basketball and volleyball courts, three swimming pools, a playground, a newly-renovated fitness center, dog park, resident clubhouse, package lockers and 105 detached garages.
TruAmerica is planning to conduct a multi-million dollar capital improvement plan for Covington Park that spans full interior renovations that include stainless steel appliances, new lighting and plumbing, new flooring, new paint and a tile backsplash for the kitchens. The company added the other renovations will focus on the interior of the clubhouse, upgrading the pools, and new landscaping and exterior paint.
CBRE represented both sides of the transaction, with Tyler Anderson, Asher Gunter, Sean Cunningham and Matt Pesch from the Arizona office representing the seller. TruAmerica’s purchase of Covington Park was also leveraged with a 10-year floating rate financing of $54.2 million from Freddie Mac’s Multifamily Green Advantage platform that was secured by CBRE’s Vice Chair of Capital Markets, Brian Eisendrath, according to Yardi Matrix data.
The seller of Covington Park, ConAm, originally bought the property from BlackRock for $29.1 million in May 2012, according to Yardi Matrix data.
PHOENIX AS A TOP MARKET
Chris Macleod, TruAmerica’s director of acquisitions, attributed their recent purchase to Phoenix’s population and job growth alongside a lack of new multifamily construction nearby. He remarked that the Phoenix metropolitan area is expected to see more population growth and that TruAmerica views the city as one of the top markets for multifamily investments.