TruAmerica Multifamily aquires 1,004- unit Baltimore portfolio valued at $187m
BALTIMORE, MD —TruAmerica Multifamily, in partnership with MSD Capital, LP, has expanded its geographical footprint to the East Coast with the acquisition of a 1,004-unit apartment portfolio in suburban Baltimore, MD, in an off-market transaction valued at $187 million.
Los Angeles-based TruAmerica has acquired a portfolio that now totals more than 17,000 units with an aggregate value over $3 billion. To date, TruAmerica has specialized in the acquisition and repositioning of mid-tier apartment communities in the Western U.S. but the acquisition of this portfolio is the first for TruAmerica east of Colorado as it expands its value-add platform to include select East coast growth markets.The portfolio is comprised of the 158-unit Bayshore Landing in Annapolis, the 634-unit Sherwood Crossing in Elkridge, and the 212-unit Southfield in Nottingham. Each property is well–amenitized, featuring resort-style pool areas, clubhouses, fitness centers and other recreational facilities. The properties were built between 1984 and 1990. “Similar to the West Coast markets in which we invest, substantially all of the new apartment inventory being built in the greater Baltimore area is targeted for ‘renters by choice,’ effectively pricing out the working class,” said TruAmerica CEO Robert Hart. “This was a major factor in the decision to target the Baltimore and Annapolis markets for our first East Coast investments.”
“MSD Capital continues to see attractive opportunities in repositioning older multi-family assets,” said Barry Sholem, head of MSD Capital’s real estate group. “We are excited to partner with TruAmerica on this portfolio, and look forward to pursuing other business together.”TruAmerica will complete an interior renovation plan initiated by the seller that includes faux-wood flooring, granite countertops, updated cabinetry and new appliance packages. “Baltimore is one of the top performing economies in the Mid-Atlantic and benefits from one of the most educated resident profiles in the United States.” said Greg Campbell, senior managing director, acquisitions. “As a result of these healthy, long-term job drivers, the three submarkets where the assets are located are experiencing tremendous demand from a younger population that prefers to rent rather than own.”