TruAmerica Multifamily, based in Los Angeles, recently teamed up on a joint venture with Washington, D.C.-based RSE Capital Partners to acquire a two-property, 454-unit multifamily portfolio in Pinellas County, Fla., for $63.75 million. Pinellas County is just west of Tampa and includes the city of St. Petersburg.
“This partnership was fortified through a shared vision for these properties,” said Noah Hochman, co-chief investment officer and head of capital markets for TruAmerica. “Working side by side with the RSE team was a great experience, and it’s our joint desire to pursue other investments together in the near future.”
Newmark Knight Frank Multifamily vice chairman Patrick Dufour and director Ryan Crowley marketed the properties on behalf of the seller, and the acquisition was leveraged with 10-year agency financing arranged by Newmark Knight Frank executive managing director Mitch Clarfield and director Ryan Greer.
The new additions include Twin Lakes and Runaway Bay, two 1980s-vintage, garden-style multifamily communities located 20 minutes apart along U.S. Highway 19, the area’s main north-south thoroughfare. Each community features a mix of one- and two-bedroom floor plans situated in two-story residential buildings in a low-density environment.
TruAmerica’s bread-and-butter business is acquiring and renovating large, Class B apartment properties, and the partners have value-add plans in place. The interiors will be renovated with higher-end finishes to create a more modern look and feel. Plans also call for select exterior and common area upgrades that include new signage and paint, landscaping, a new outdoor kitchen, and a refreshing of the clubhouse, fitness center, and pool areas to enhance the resident living experience.
“We’re excited to kick off our first deal with TruAmerica, who we regard as one of the top owners nationwide,” said Max Kirschenbaum, head of business development for RSE. “We look forward to working with their team to unlock the full potential of these great assets.”
TruAmerica’s multifamily portfolio now encompasses nearly 5,000 units with 20% of them in the Tampa/St. Petersburg market, which offers fertile ground for residential cultivation.
“The Tampa MSA continues to experience exceptional job growth, and the employment mix is rapidly shifting toward high-wage occupations in the finance, business services, education, and health-care industries,” said Matt Ferrari, co-chief investment officer and head of acquisitions at TruAmerica. “The high barriers to entry have limited new supply, creating tremendous demand for quality affordable rental housing.”
