HUNTINGTON BEACH, CA – TruAmerica Multifamily has acquired Pacific Shores, a 264-unit apartment community in Huntington Beach, CA from affiliates of UDR, Inc. for $90.5 million.
Pacific Shores represents a true value add investment for TruAmerica, which targets well-located Class B multifamily assets that can benefit from strategic renovation while still keeping rents affordable for working families and individuals seeking quality rental housing.
Located at 7701 Warner Avenue, Pacific Shores features a mix of one- and two-bedroom floor plans with washer and dryer, private balcony or patio, and walk in closets. TruAmerica will immediately begin a multimillion-dollar capital improvement program building on the moderate renovation of unit interiors started by the seller.
TruAmerica also will undertake a complete overhaul of 74 units that have been virtually untouched since the property was constructed in 1970. Improvements will include new stone countertops with under mount sinks, kitchen backsplash, and cabinet doors. Upgrades to the community amenities and exterior will include improvements to the pool and spa area, dog park and fitness center, as well as new signage, landscaping, lighting and outdoor barbeque area.
“The competition for this property was extremely fierce,” said Greg Campbell, TruAmerica Senior Managing Director of Acquisitions and Dispositions. “Huntington Beach is a high barrier to entry market boasting great multifamily fundamentals and the opportunity to acquire an institutional quality asset with such tremendous upside is difficult to find here.”
Given Huntington Beach’s excellent schools and desirable costal location, the city boasts some of the highest home prices in Orange County, creating a strong demand for quality rental housing, according to Mark Petersen who led the Eastdil Secured team, which marketed the property on behalf of the seller.
TruAmerica’s acquisition was leveraged with seven-year agency financing through Freddie Mac’s select sponsor program. The financing was arranged by Berkeley Point Capital Senior Managing Director Mitch Clarfield.
TruAmerica Multifamily is a vertically-integrated, value-add multifamily investment firm based in Los Angeles. Founded in July 2013 as a joint venture between Robert Hart and The Guardian Life Insurance Company of America, TruAmerica manages a $7.0 billion portfolio of approximately 33,000 units across prime locations throughout Northern and Southern California, Washington, Oregon, Colorado, Arizona, Nevada, Utah, Maryland and Florida.