Bob Hart Bob Hart

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TruAmerica Multifamily's transactions—bothacquisitions and dispositions—hit $1.3 billion in 2018. Acquisitionvolume alone grew to nearly $1 billion in 2018, as the firm hascontinued to buy in growth markets. In addition to the firm'stransaction volume growth, it is entering 2019 with key promotionsto propel future growth. The promotions include NoahHochman and Matthew Ferrari to co-chiefinvestment officers and Tammi Warner to managingdirector of transactions and Underwriting.

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“We are focused on several key high-growth West Coastmultifamily markets that support our strategy, including OrangeCounty, San Diego, Phoenix and Las Vegas as well as thestates of Florida and Georgia,” Robert E. Hart,founder and CEO of TruAmerica Multifamily, tells GlobeSt.com.“These markets produced 20 new properties for us totaling 7,000units. Our team is centered around building our substantial marketshare in these markets, which will allow us to take advantage ofeconomies of scale.”

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In 2018, in general was a robust year for multifamilyinvestment. TruAmerica grew its transactionvolumes year-over-year. “In 2017 we closed approximately$700million  in transactions. In  2018 weclosed $957 million so a very robust year forTruAmerica,” says Hart. He adds that it will continue to grow itsportfolio this year and increase its transaction volume. “In 2018we sold nearly $400 million in assets,” he says. “This year weexpect to remain a net buyer as we build our portfolio, whilereducing our exposure to key assets that have achievedtheir five-year business plans.”

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To reach that goal, Hart has no intention of changing itsinvestment strategy for 2019. In fact, the firm has yet to changeits investment strategy since its inception. “We have stuck to ouroriginal plan of finding below replacement cost, class-Bmultifamily properties in high growth undersupplied submarkets,”says Hart.

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While the class-B strategy has been successful, more investorscontinue to enter the space and flood into the growth markets thefirm has targeted. Despite the increase in competition, TruAmericahas managed to remain active in the space and win deals. “We havelowered our cost of capital and sharpened our underwriting pencilsto fit the current environment,” says Hart. “In addition , we mustsearch harder to find opportunities that fit our profile, and whenwe do find them, we are relentless in our pursuit of leaving nostone unturned . Our goal is to know the asset, as well, if notbetter than the seller so we can maintain a competitive advantagein winning the deal.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.