TruAmerica: Cycle Will Extend Longer Than Others

LOS ANGELES—TruAmerica Multifamily expects this cycle to extend longer than others. As GlobeSt.com recently reported, the value-add investor has purchased a seven-property portfolio for $255 million. TruAmerica underwrites its properties for five years, and, as such, it expects the cycle to be healthy for the next several years.

“The fundamentals are unique in this cycle because you have a paradigm shift with homeownership continuing to decline,” Noah Hochman, senior managing director of acquisitions and investor relations at TruAmerica Multifamily, tells GlobeSt.com. “New construction is really being built for a small segment that can afford the expensive rents, so there is a large demand from millennials and people who are downsizing. I think this cycle is going to be longer than previous cycles. We are bullish, and we still think that there are opportunities. You might not see the run up that you have seen in the last 24-months, but as long as you have job growth, I think that we will continue to see opportunities for value-add the next several years.”