Article Originally Posted On Globe St. On Ma7 27th, 2021
Los Angeles-based TruAmerica Multifamily has expanded its footprint in Phoenix and Nashville with the purchase of two garden-style apartment buildings in separate transactions for a combined $196 million. The two properties total nearly 1,000 units.
In Phoenix, TruAmerica purchased The Urban, a 435-apartment. The acquisition brings the firm’s Arizona portfolio to 3,000 units with assets in Phoenix, Tempe, Avondale and Chandler. It is the firm’s second purchase this year in the market. In January, it acquired The Bella, a 200-unit garden-style community in North Phoenix.
In Nashville, TruAmerica purchased Viera Cool Springs, a 468-unit property built in 1987. This is the firm’s second acquisition in the market. It entered Nashville with the acquisition of Southpoint at Stones River, a 410-unit community in Hermitage, which it acquired for $100 million.
In keeping with its standard value-add business strategy, TruAmerica Multifamily plans to make targeted improvements to both properties while maintaining attainable rental rates for the markets.
Phoenix and Nashville have among the top growth markets during the pandemic. Both cities have seen an influx of population and job growth. Phoenix has grown tremendously. Commercial Search, the city is ranked sixth in the nation for multifamily sales over the last decade. The market has closed $42 billion in apartment investment sales since 2009. During that time, prices on multifamily increased 156%. Affordability has been the key driver of growth.
Nashville is a similar story. A new report summarizing the multifamily investment forecast from Marcus & Millichap lists Nashville as well as Phoenix among the top markets benefiting from what it calls “in-migration momentum.”
Other investors are also following the trend. Earlier this month, Brickstone Partners acquired two apartment communities, totaling 288 units adjacent to Colorado State University in Fort Collins, CO. The firm purchased the communities for $81 million. The investor will implement a comprehensive upgrade to the properties, which comprise the Landmark apartment community and Stone Creek apartment community. In Phoenix, multifamily developer ZOM Living entered the Phoenix market. The firm plans to invest $500 million in the market and build more than 1,600 units in North Phoenix, Scottsdale and the Biltmore District.