A joint venture between ASB Real Estate Investments and TruAmerica Multifamily has acquired Corte Bella Apartments, a 251-unit apartment community in Fountain Valley, Calif., from Shea Apartments, for $85.8 million.
ASB’s investment was made on behalf of its $7 billion Allegiance Real Estate Fund.
“Corte Bella fits ASB’s strategy for securing high-tenant demand, income-producing multifamily investments in the nation’s leading infill markets with attractive household income profiles,” Aaron Duncan, ASB Real Estate Investments’ senior vice president, told MHN. “The Orange County submarket in Fountain Valley is severely supply constrained and the property is extremely well located within an easy commute to nearby employment centers.”
At the time of the sale, the Bella Apartments were 97 percent leased.
The property is comprised of 33 two-story residential buildings, offering both one- and two-bedroom units. All have dedicated unit garages and offer access to secluded courtyards and seven community-wide swimming pools.
“We have the potential to enhance net operating income and future appreciation through implementing a modest improvement program working with our partner TruAmerica,” Duncan said. “Our post-renovation rents will remain affordable for a deep pool of area residents earning close to median income levels.”
A Popular Submarket
The community is situated on 12 acres just off I-405, only 35 miles from downtown Los Angeles, in the popular Fountain Valley submarket.
According to Duncan, the area is currently supply constrained with minimal available multifamily development opportunities and an ageing housing stock, and benefits from a high median household income of approximately $90,000. It’s located near major employment centers, highly rated schools and is close to the Greater Orange County airport.
August has been a busy month for TruAmerica Multifamily, as it has been expanding its employee base in an effort to grow its national platform. The company recently promoted Matthew Ferrari to senior managing director and hired former Bascom Vice President Christopher MacLeod as director of acquisitions on the West Coast.