Ares Management Funds and TruAmerica Multifamily Acquire 240-Unit Apartment Community in Phoenix for $31 Million
June 13 2017 - 6:02PM
Business Wire
Funds managed by Ares Management, L.P. (NYSE:ARES) and
TruAmerica Multifamily announced today the acquisition of
Broadstone Gateway, a 240-unit family community in the Phoenix, AZ
metro area. The transaction was valued at $30.75 million.
Broadstone Gateway is located at 1700 North 103rd Avenue in
Avondale, 20 miles west of downtown Phoenix. Built in 2004, the
pet-friendly, gated community features a mix of one-, two- and
three-bedroom open concept living spaces. Amenities include a
resort-inspired swimming pool and spa with poolside cabanas,
fitness center, community barbecues, bocce ball court and
playground.
This is the second investment for the Ares-TruAmerica joint
venture, which in November acquired a 1,402-unit multifamily
portfolio in Baltimore, MD for $236 million.
“The acquisition of Broadstone Gateway is consistent with our
strategy of investing in multifamily properties that have
repositioning potential and where our expertise can add meaningful
value,” said Howard Huang, Partner in the Ares Real Estate Group.
“We look forward to continuing to partner with TruAmerica on assets
that can benefit from our collaboration and where we can enhance
the quality of rental properties in desirable markets.”
The partnership will immediately execute a multimillion-dollar
capital improvement program. Changes to the unit interiors will
include new faux-stainless steel appliances, quartz kitchen and
bathroom countertops, wood-style flooring, and new lighting and
plumbing fixtures. Significant improvements will also be made to
the pool area, clubhouse and fitness center, along with new signage
and landscaping to enhance the curb appeal of the property.
The property benefits from its location at the northwestern
corner of Loop 101 and Interstate 10, providing easy access to all
major employment centers in the Phoenix metro area.
“Avondale is an example of the first ring suburban submarket in
which we typically invest and can add meaningful value,” said Noah
Hochman, Senior Managing Director of Capital Markets for TruAmerica
Multifamily. “We look for areas with great schools and a
transportation infrastructure in place that allows residents to
easily commute to jobs in the region.”
With approximately $10 billion in assets under management across
equity and debt strategies as of March 31, 2017, the Ares Real
Estate Group has a significant presence in the multifamily sector.
Over the past decade, Ares’ U.S. equity value-add strategy has
invested in over 31,000 units across its most recent funds.
With the acquisition of Broadstone Gateway, TruAmerica adds 240
units to the 1,567 units it already owns in the greater Phoenix
area. TruAmerica specializes on acquiring and renovating Class B
multifamily properties to create affordable quality rental housing
for middle-income families.
Steve Gebing and Cliff David, Senior Managing Directors in the
Phoenix office of Institutional Property Advisors represented both
parties in the transaction.
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded, leading global
alternative asset manager with approximately $100 billion of assets
under management as of March 31, 2017 and more than 15 offices in
the United States, Europe and Asia. Since its inception in 1997,
Ares has adhered to a disciplined investment philosophy that
focuses on delivering strong risk-adjusted investment returns
throughout market cycles. Ares believes each of its three distinct
but complementary investment groups in Credit, Private Equity and
Real Estate is a market leader based on assets under management and
investment performance. Ares was built upon the fundamental
principle that each group benefits from being part of the greater
whole. For more information, visit www.aresmgmt.com.
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
country's most active multifamily investors and manages a $6.7
billion portfolio of approximately 32,000 units across prime
locations throughout Northern and Southern California, Washington,
Oregon, Colorado, Arizona, Nevada, Utah, Maryland and Florida. For
more information on TruAmerica Multifamily, visit
http://www.truamerica.com or call (424) 325-2750.
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version on businesswire.com: http://www.businesswire.com/news/home/20170613006548/en/
For Ares Management:Media:Mendel CommunicationsBill Mendel,
212-397-1030bill@mendelcommunications.comorInvestors:Carl Drake,
800-340-6497cdrake@aresmgmt.com
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