TruAmerica Multifamily, in joint venture with RSE Capital Partners, has acquired a two-property, 454-unit multifamily portfolio in the Tampa submarket of Pinellas County for $63.75 million.
The portfolio acquisition increases TruAmerica’s Florida portfolio to nearly 5,000 units, with 20 percent in the Tampa/St. Petersburg market, considered one of Florida’s most dynamic apartment markets, according to Co-Chief Investment Officer and Head of Acquisitions Matt Ferrari.
Newmark Knight Frank, a commercial real estate advisory firm,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 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 healthcare industries,” Ferrari said. “The high barriers to entry have limited new supply, creating tremendous demand for quality affordable rental housing.”
The acquisition is the first joint venture between TruAmerica and Washington D.C.-based RSE Capital Partners.
“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.”
“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.”
Twin Lakes and Runaway Bay are both 1980s vintage garden-style multifamily communities located 20 minutes apart along US Highway 19, the area’s main north-south thoroughfare. Each community features a mix of one- and two-bedroom floorplans situated in two-story residential buildings in a low-density environment.
TruAmerica and RSE will institute a significant capital improvement plan across the portfolio, renovating the interiors 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 refreshing of the clubhouse, fitness center and pool areas to enhance the resident living experience.