LOS ANGELES, CA - TruAmerica Multifamily in partnership with capital partner ASB Real Estate Investments on behalf of its Allegiance Real Estate Fund, has acquired Corte Bella, a 251-unit multifamily community in the Orange County city of Fountain Valley, CA for $85.8 million.
This is TruAmerica’s second significant Orange County investment in the past six months. In February, the Los Angeles-based real estate investment firm acquired a 264-unit apartment community in Huntington Beach for $90.5 million. Both are among the largest single asset multifamily acquisitions in Orange County in 2018.
2018 continues to be an active year for TruAmerica as the firm builds upon its portfolio of more than 36,000 apartment units across the United States. TruAmerica has acquired approximately $750 million in multifamily assets, totaling 4,000 units over the past 12 months, with nearly one-third in the Southern California area.
“Fountain Valley is a highly desirable, centrally located Orange County submarket, with a severe shortage of modern rental housing, making Corte Bella a compelling investment opportunity,” said TruAmerica Director Zach Rivas who led TruAmerica’s acquisition team. “The vast majority of Fountain Valley’s 4,200 multifamily units were built prior to 1980, and due to high barriers to entry, there is very little new product is in the pipeline.”
Built in 1969, Corte Bella is located on an ultra-low-density 12-acre site at 9580 El Rey Avenue. The community features a mix of one- and two-bedroom apartment homes, with private garages in 33, two-story residential buildings. Common area amenities include seven swimming pools, fitness center, dog park, courtyards and barbecue picnic areas. Corte Bella was 97 percent occupied at the time of closing.
“Working with TruAmerica we plan to upgrade units and take advantage of the property’s unique amenities to maintain high occupancies and solidify rent levels in one of the country’s most favorable and desirable multifamily investment markets,” said Aaron Duncan, ASB Senior Vice President.
The multimillion-dollar capital improvement program will include the installation of washer/dryer connections in each of the apartments. This will allow for the conversion of nine existing laundry facilities to a variety of new tenant amenities such as a business center, pet spa and bike storage.
The property was marketed on behalf of the seller by the Moran & Company team of Mike Murphy, Tom Moran, Jr. and Mary Ann King.
The acquisition was leveraged with 10-year financing through Freddie Mac’s select sponsor program, which was arranged by Berkeley Point Senior Managing Director Mitch Clarfield.