Opportunities Grow in Second-Tier Markets

Noah E. Hochman

Investors are heading to secondary markets, like Phoenix and Las Vegas, for multifamily investment opportunities, which are showing stronger rent growth. TruAmerica Multifamily, in a joint venture with Oaktree Capital Management, has purchased two multifamily properties in Las Vegas and Phoenix for a total of $142 million. The two properties include Galleria Palms, a 424-unit multifamily property in Tempe, which the firm acquired for $75.1 million, and Aviata, a 456-unit multifamily property in Henderson/Paradise Valley, which the firm purchased for $67 million.

“We focus on the class-B, rent-by-necessity demographic. We look for opportunities with assets that need fresh capital and fresh management, and that have a dated appeal to reinvest in the properties and make them more competitive. Both of these properties really fit that profile,” Noah Hochman, senior managing director of capital markets for TruAmerica Multifamily, tells GlobeSt.com about the purchases. “Both properties are great buys for us, and they both provide the opportunity to renovate the interiors.”