Ares partners with TruAmerica on real estate portfolio

The global asset manager and Los Angeles-based multifamily investment firm acquire 1,402 units for renovation and repositioning.

Ares Management and TruAmerica Multifamily have teamed up to acquire a 1,402-unit multifamily portfolio in suburban Baltimore, Maryland, for $236 million, the firms announced on Monday.

The acquisition was financed with an agency loan, but further details were not disclosed.

“This investment is representative of our US equity value-add strategy, which focuses on areas with strong employment centers and unit-enhancement opportunities,” Steven Wolf, partner in Ares Management’s real estate group, said in a statement.

The portfolio consists of six properties in the greater Baltimore metropolitan area, located near major military, government and corporate employers in the area: the Dominion at Eden Brook and Dominion Kings in Columbia; the Lakeside Mill in Owning Mills; the Ellicott Grove apartments in Ellicott City; the Arborview at Riverside & Liriope in Belcamp; and Dominion Constant Friendship in Abingdon.

The partnership will implement a multi-million dollar renovation and repositioning programme across the entire portfolio, with approximately 50 percent of the units in the portfolio slated to be renovated, refurbished and landscaped.

The Ares real estate group has a significant presence in the multifamily sector in the US. Over the past decade, the company has invested in over 27,000 units across its most recent funds and now has approximately $10.4 billion in assets under management across equity and debt strategies.

The firm’s US real estate team has approximately $4.4 billion of assets under management and a portfolio of 67 investments as of September 30, 2016.

This portfolio acquisition marks TruAmerica’s second significant investment in the region. The first was a $187 million acquisition of three apartment communities in Baltimore and Annapolis totaling 1,004 units, the Los Angeles-based multifamily investment firm announced in May.  Including the latest acquisition, TruAmerica now has more than 32,000 multifamily units under management with 2,400 in Maryland.