TH Real Estate Acquires Sunbelt-Based Value-Add Properties

Los Angeles–TH Real Estate, a division of TIAA Global Asset Management, has acquired a trio of value-add multifamily communities in three separate transactions. All three of the properties are in Sunbelt locations, and all are ripe for repositioning.

Waterstone at Chatsworth

The company targets garden-style rental housing in infill locations that display value appreciation potential  as well as the likelihood of high current income. This strategy emphasizes value-enhancing upgrades to amenities and common areas. Low-cost financing via tax-exempt bonds is another linchpin of the firm’s strategic approach.

The three properties are:

• Waterstone at Chatsworth, Los Angeles. This 45-year-old, 348-unit community is situated in the well-heeled and supply-constrained San Fernando Valley. It has benefited from partial upgrades to some units. Among the property’s pluses are proximity to public transportation, job centers and a well-respected school system. TH Real Estate will undertake renovation with high-level finishes, differentiating the community from among its submarket peers.
• Ironhorse at Tramonto, Phoenix. Situated in a stable market with favorable long-term fundamentals, this 324-unit apartment community will benefit from a renovation initiative scheduled to take place over the next two years. The expansion of the submarket’s commercial area is expected to foster continued expansion in the area, where growth has been ongoing since 2001. This is another property with an excellent location. It is situated near major employment and retail centers and is the lone apartment community in the submarket whose residents are literally just steps from Tramonto Marketplace. That retail center offers a broad variety of shopping and dining experiences.
• The Nine on Shoreline, Austin. Situated within a 10-minute drive of North Austin technology powerhouses Dell, Apple, eBay/PayPal, HP and Samsung, this is a 15-year-old community with 280 apartment homes. Eight minutes east of the community is Tech Ridge, a tech-rich employment hub with 4.6 million square feet of commercial space overwhelmingly occupied by high-tech companies. The Domain, a 1.8-million-square-foot retail destination, is also in close proximity. The property will be repositioned as a leading Class B in its submarket, with modern unit interiors and updated amenities at competitive rents.

“These acquisitions are consistent with one of our main multifamily investment strategies of acquiring quality communities with value-add potential in stable markets with positive long-term fundamentals,” said Jay Martha, TH Real Estate’s managing director.

“Throughout our 20-year track record in workforce housing, we’ve successfully invested throughout all points in the investment cycle, and believe that current economic and demographic trends will continue to provide opportunities for multifamily investing that may result in strong performance for our investors.”