RALEIGH, NC - TruAmerica Multifamily continues to expand its holdings in the southeast by making its initial investment in North Carolina, a three-asset, 830-unit multifamily portfolio in Raleigh NC, for $108.7 million.
In only two years since entering the southeast property markets, TruAmerica’s regional portfolio now includes 20 multifamily communities totaling more than 7,000 apartments. TruAmerica’s other regional holdings include 13 assets in Florida and four in Georgia.
“Our objective has been to establish and build the TruAmerica brand in strong multifamily markets throughout the southeast,” said Matthew Ferrari, Co-Chief Investment Officer for TruAmerica. “In the span of just over two years we’ve built a sizeable portfolio of high-quality assets located in fundamentally strong multifamily submarkets where we see plenty of runway for same store rent growth. The acquisition of these three properties in the rapidly expanding Raleigh-Durham MSA provided us the perfect opportunity to enter North Carolina with scale in a high barrier-to-entry market.”
Raleigh-Durham is experiencing significant economic growth as a result of the area’s expanding roster of technology and healthcare businesses, according to Ferrari. It ranks No. 2 in the country for STEM employment growth, driven in part by the Research Triangle Park, the largest research park in the United States and home to GlaxoSmithKline’s R&D center (5,000 employees), Cisco Systems (5,000 employees), and a strong contingent of other science- and tech-focused firms.
Despite the area’s significant population and economic growth, only 450 multifamily units have been delivered in the submarket over the past 10 years, according to JLL.
Duraleigh Woods is the largest of the three properties, with 362 one-, and two-bedroom apartment homes. Built in 1986, the property is located near US 70, the main thoroughfare that connects Downtown Raleigh and Downtown Durham, with immediate access to the Raleigh-Durham International Airport and the Research Triangle Park. All of the homes include full-size washers and dryers, walk-in closets, fireplaces, and patios or balconies.
Making up the portfolio is Bridgeport (276 units) and Sailboat Bay (192 units), two of only six communities in the area with frontage on Lake Lynn, a 56-acre tree-lined man-made lake, part of Raleigh’s 75-acre Lake Lynn Park. Each community is located in the A-rated Northwest Raleigh public school district.
All three properties were well maintained by previous ownership, which focused much of its attention on upgrading the common area amenities and property exteriors. TruAmerica’s capital improvement plan will target significant improvements to the unit interiors across the portfolio, including the addition of stainless-steel appliances, new cabinet fronts and hardware, vinyl plank flooring, tile backsplashes and modern lighting and plumbing fixtures.
Andrea Howard and John Currin from JLL’s Southeast Multifamily Team marketed the properties on behalf of the seller.
TruAmerica has been one of the country's most active multifamily investors and manages an $8.7 billion portfolio of approximately 41,000 units across prime locations throughout Northern and Southern California, Washington, Oregon, Colorado, Arizona, Nevada, Utah, Maryland, Florida Georgia, and North Carolina.