TruAmerica secures $157m on Pacific Northwest portfolio

CBRE Capital Markets’ Debt & Structured Finance announced that it arranged nearly $157m in financing for the acquisition of a six-property, 1,413-unit multifamily portfolio in the Pacific Northwest states of Washington and Oregon.

CBRE Capital Markets’ Debt & Structured Finance announced that it arranged nearly $157m in financing for the acquisition of a six-property, 1,413-unit multifamily portfolio in the Pacific Northwest states of Washington and Oregon.

The seven-year loans were made to borrower TruAmerica. Four of the loans carry three years interest-only with a blended, fixed interest rate of 3.85 percent. The remaining two properties were financed with floating-rate loans, three years interest-only and a starting rate of 2.60 percent.

The purchase is part of TruAmerica’s $255m acquisition of seven total properties, the additional one located in Utah. The company teamed up with a group of institutional investors including Allstate Real Estate Investment Group and Guardian Life Insurance Co. of America to buy the portfolio from Philadelphia-based Equus Capital Partners.

Eisendrath
Eisendrath

The properties included in the CBRE-arranged financing are the 296-unit Boulder Creek and 315-unit Bridge Creek in Wilsonville, Oregon; the 188-unit Alderwood ParK in Lynnwood, Washington;  the 153-unit Ridgegate in Kent, Washington; and the 220-unit Ridgetop and 240-unit Wellington in Silverdale, Washington. CBRE declined to identify the lender.

The borrower will implement a value-add renovation program, as the portfolio “provides a phenomenal value-add opportunity and the ability to capitalize on the strong Seattle and Portland rental markets,” said CBRE’s Brian Eisendrath, who arranged the financing with Cameron Chalfant. “By doing a deep dive into the business plan on each asset, we were able to match the most aggressive capital yielding the best returns.”

Robert Hart, CEO and president of TruAmerica, added: “They provided aggressive financing and were able to increase proceeds by more than $5.4m from application to closing, which will help us to reposition these well-built assets.”

Los Angeles-based TruAmerica’s rapidly expanding Pacific Northwest portfolio is expected to reach 6,000 units by the end of the year. The firm has invested more than $500m in the Pacific Northwest since June.

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