TruAmerica Multifamily, in partnership with MSD Capital, has secured $159 million in Freddie Mac financing on its acquisition of a 1,004-unit apartment portfolio in suburban Baltimore, Maryland, Real Estate Capital has learned.
The floating rate, five-year loan, provided through Freddie Mac’s acquisition rehab program and arranged through HFF, is interest only for its full term and carries an interest rate in the low 3 percent range, sources said.
The off-market acquisition was valued at $187 million. The portfolio, built between 1984 and 1990, is comprised of the 158-unit Bayshore Landing in Annapolis, the 634-unit Sherwood Crossing in Elkridge, and the 212-unit Southfield in Nottingham. The buyer will complete an interior renovation plan initiated by the seller, which includes renovations to apartment interiors as well as common area upgrades.
Los Angeles-based TruAmerica, one of the most active multifamily investors in the US, has acquired a portfolio that now totals more than 17,000 units with an aggregate value over $3 billion.
The company specializes in the acquisition and repositioning of mid-tier apartment communities in the Western US, but this latest acquisition is its first east of Colorado as it expands its value-add platform eastward.
“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, in a statement. “This was a major factor in the decision to target the Baltimore and Annapolis markets for our first East Coast investments.”
Barry Sholem, head of MSD Capital’s real estate group, added: “MSD Capital continues to see attractive opportunities in repositioning older multi-family assets.”