TruAmerica Closes $708M Workforce Housing Fund
The firm has already put the money to work, buying 14 properties totaling more than 3,300 units.
TruAmerica Multifamily has closed its $708 million Workforce Housing Fund II, giving the company roughly $2 billion in purchasing power to invest in essential housing across 25 high-growth U.S. markets.
Since its launch in 2023, the fund has acquired 14 properties totaling 3,334 units across nine metropolitan areas, including the Greater Boston metro. One of the fund’s acquisitions was Villas at Old Concord, a 324-unit community completed in 2005 in the Boston suburb of Billerica, Mass., that was acquired in 2024.
Fund II is a closed-end, discretionary, commingled vehicle focused on direct equity investments in existing, stabilized multifamily properties serving households earning approximately 60 to 100 percent of their area median income. The fund targets well-located Class B communities near major central business districts that have supply-demand imbalances and a limited inventory of attainable rental housing. Strong demographic trends, employment growth and diverse economic drivers are also key considerations.
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Fund I, which had $575 million in commitments, has been fully deployed. Its final close was in late 2021.
Noah Hochman, chief investment officer, said the 25 target markets fall between Denver, the furthest to the west, and Nashville, the easternmost.
“We continue to focus on garden-style apartment communities in our high-growth target markets, including Salt Lake City, Tampa and the Seattle metro, among others, where strong demographic trends and durable demand drivers support long-term workforce housing fundamentals and where we can build better communities,” Hochman told Multi-Housing News.
The seed portfolio is located across the Mountain West, the Southwest, New England and Florida, with recent acquisitions in Boston, Seattle and the Baltimore-Washington, D.C. MSAs, according to Stella Pappas, the firm’s executive managing director of investment management.
Last week, TruAmerica purchased Luxe Villas and Haven Apartments, with a total of 157 units, in the Los Angeles metro. WS Communities and Gortikov Capital sold Luxe Villas, a 60-unit asset in Brentwood, Calif., and Cityview sold Haven Apartments, a 97-unit property in Culver City, Calif.
Forming the fundraise
Fund II secured $708 million in total commitments, inclusive of co-investments, from a diverse group of domestic and global institutional investors including insurance companies, pension plans, asset managers and family offices. U.S. investors accounted for 65 percent of total capital commitments. Non-U.S. investors—many of them first-time partners with TruAmerica and within the U.S.—represented 35 percent of total capital commitments.
“Both domestic and international investors recognize the importance of supporting essential housing for the individuals who make up our everyday workforce and keep our communities functioning,” Pappas said.
Fund II was raised by TruAmerica’s in-house capital formation team led by Hochman, Pappas and Alexis Sofyanos, the company’s senior director of investment management. Nomura Securities served as TruAmerica’s placement agent in Japan. Gibson, Dunn & Crutcher LLP acted as fund counsel, led by partner Eve Mrozek and associate Trevor Herden.
Opportunities amid a valuation reset
Hochman said that asset valuations had declined by up to 20 percent from their 2022 peak levels, when they began acquiring properties for Fund II in late 2023.
“Concurrent with the fundraise, we assembled a compelling seed portfolio, capitalizing on the pricing reset marked by higher cap rates on newer vintage value-add assets—primarily late 1990s to early 2000s construction—acquired at meaningful discounts to replacement costs and offering clear opportunities for resident-focused, on-site improvements,” he shared.
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Hochman said that as the fund begins to acquire more properties over the next 12 to 24 months, their regional acquisition teams will work with the asset management and construction management arms to uncover “compelling opportunities amid this extended valuation reset.”
Pappas said Fund II is the right vehicle for the current market environment.
“With transaction volumes still recovering and pricing discovery continuing across markets, this fund size allows us to remain highly selective and focused on conviction-based investing,” Pappas noted.
She added the firm does not feel pressured to deploy capital for the sake of deployment.
“The scale of the fund provides ample capacity to build a diversified, high-quality portfolio while maintaining discipline around basis, submarket selection and business plan execution,” Pappas said.
But she also noted they are “increasingly seeing idiosyncratic, story-driven assets—often tied to near-term loan maturities or ownership-driven liquidity needs.”
