Los Angeles-based TruAmerica has moved into the hotbed of North Carolina’s real estate market by plunking down $108.7 million for a three-asset, 830-unit multifamily portfolio in the Raleigh-Durham area. Andrea Howard and John Currin from JLL’s Southeast Multifamily Team marketed the properties on behalf of the unnamed seller. Since 2017, TruAmerica has amassed a regional portfolio that now includes 20 multifamily communities with more than 7,000 apartments. TruAmerica’s other regional holdings include 13 assets in Florida and four in Georgia.
“The acquisition of these three properties in the rapidly expanding Raleigh-Durham MSA provided us the perfect opportunity to enter North Carolina with scale in a high barrier-to-entry market,” says Matthew Ferrari, co-chief investment officer for TruAmerica.
The Research Triangle, which includes Raleigh, Durham, and Chapel Hill, is parlaying the brain power coming out of Duke University, NC State University, and the University of North Carolina at Chapel Hill to become a vibrant tech and health-care center. It ranks No. 2 in the country for STEM employment growth and has the largest research park in the United States. It’s home to GlaxoSmithKline’s R&D center and Cisco Systems, both of which employ 5,000 people. Amidst all that growth, JLL reports that only 450 multifamily units have been delivered in the submarket over the past 10 years.
The acquired properties include Duraleigh Woods, which is the largest of the three new additions. Its 362 units include a mix of one- and two-bedroom units. Built in 1986, the property is located near U.S. 70, the main thoroughfare that connects Raleigh and Durham, with immediate access to the Raleigh-Durham International Airport and the Research Triangle Park. All of the homes include full-size washers and dryers, walk-in closets, fireplaces, and patios or balconies. Bridgeport (276 units) and Sailboat Bay (192 units) both front Lake Lynn.
The communities’ previous owners kept the common areas updated, leaving TruAmerica to focus on renovating unit interiors with stainless steel appliances, new cabinet fronts, hardware, vinyl plank flooring, tile backsplashes, modern lighting, and plumbing fixture upgrades.
“In the span of just over two years we’ve built a sizable portfolio of high-quality assets located in fundamentally strong multifamily submarkets where we see plenty of runway for same store rent growth,” adds Ferrari.
