TruAmerica and MSD Capital Acquire San Francisco Apartment Complex for $64MM

TruAmerica, MSD Capital, San Francisco, Bay Area, Greystar, Bayview District, Holliday Development, Waterbend

(EDITOR’S NOTE: According to sources familiar with the details of the transaction, the deal closed for $64 million, or just over $470,000 per unit.)

Los Angeles and San Francisco, CA, June 13, 2016 — TruAmerica Multifamily, in partnership with MSD Capital, L.P., has bolstered its 1,000-unit multifamily portfolio in the San Francisco Bay area with the acquisition of a newly constructed, 136-unit Class A apartment complex in the cityеs Bayview District. TruAmerica acquired the asset from Holliday Development in an off-market transaction.

Located at 5880 Third Street, Waterbend comprises one- and two-bedroom apartments, with 20 units set aside for affordable housing. The units, which range in size from 572 to 1,038 square feet, feature complete appliance packages with full-size washers and dryers, Corian countertops, and vinyl plank flooring. Community amenities include a fitness center, resident lounge, dog wash station and a 10,000-square-foot central courtyard with an outdoor fire pit.

TruAmerica has been an active investor in Northern California multifamily assets since its formation in June 2013. With Waterbend, TruAmericaеs Bay Area holdings now include six assets totaling 1,181 units. One of the most active multifamily investors in the United States, TruAmerica has acquired 18,000 units located throughout the Western United States and Maryland in just 3 years.

San Francisco continues to be supply constrained with a limited number of new multifamily units coming online relative to the strong demand in the city,г said TruAmerica Senior Managing Director of Capital Markets, Noah Hochman. вBy sourcing this pre-sale opportunity off market, we were able to acquire the asset at an attractive price, in a submarket we feel is poised for tremendous growth.г

MSD Capital is pleased to build upon its partnership with TruAmerica,г commented Barry Sholem, head of MSD Capitalеs real estate group. вWe are excited to invest in an attractive new apartment building in an emerging submarket in the City of San Francisco that is well-served by regional transportation infrastructure.г

The Bayview submarket is located in southeast San Francisco near Hunters Point. Historically an industrial area, Bayview has benefited from the cityеs efforts to stimulate business, employment and housing growth in the area with the adoption of the Bayview-Hunters Point Redevelopment Plan. As a result, Bayview is undergoing an extraordinary urban renewal that includes the 800-acre, $10 billion San Francisco Shipyard and Candlestick Point projects being developed by Five Point Communities. Bayview is also experiencing a growing amenity base that includes a new Macerich mall, popular San Francisco retail stores, entertainment, boutique coffee shops, restaurants and breweries.

This is the second investment for TruAmerica with MSD Capital L.P. Last month the partnership acquired a 1004-unit apartment portfolio in suburban Baltimore, Maryland.

TruAmerica has retained Greystar to manage the lease-up and stabilization of the property given their in-depth understanding of the local submarket.

About TruAmerica Multifamily
TruAmerica Multifamily is a vertically integrated value-add multifamily investment firm based in Los Angeles. Founded in July 2013 as a joint venture between Robert Hart and The Guardian Life Insurance Company of America, TruAmerica has been one of the countryеs most active multifamily investors and manages a $5.8 billion portfolio of approximately 28,000 units across prime locations throughout Northern and Southern California, Washington, Oregon, Colorado, Arizona, Nevada, Utah and Maryland. For more information on TruAmerica Multifamily, visit www.truamerica.com or call (424) 325-2750.

About MSD Capital, L.P.
MSD Capital, L.P. is the private investment firm that was established in 1998 to exclusively manage the capital of Michael Dell and his family. The firm utilizes a multi-disciplinary investment strategy focused on maximizing long-term capital appreciation by making investments across the globe in the equities of public and private companies, credit, real estate and other asset classes and securities. MSD Capitalеs team operates from the firmеs offices in New York and Santa Monica.

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