The acquisition was TruAmerica's eighth in the Orlando area. The apartment community, built in 1997-98, is located at 700 Oakland Hills Circle and faces busy Rinehart Road in Lake Mary. The Florida Trail passes in front of the complex.
Matthew Ferrari, TruAmerica's head of acquisitions and co-chief investment officer, said in a written statement that the company views Orlando as having sound multifamily fundamentals, including continuing job and population growth, and a limited supply of new rental housing to meet demand.
"The ability to acquire Legends at Lake Mary at a significant discount to new construction allows us to improve the property to compete with higher-priced product in the area, but still keep rents in line for our residents," Ferrari said in the statement.
The seller was Golfview Apartments Holdings LLC, an affiliate of Rock Companies of Bloomfield, Mich. The privately held real estate investment firm bought the apartment community in November 2006 for $35.66 million.
Legends at Lake Mary was formally known as Golfview Apartments because it borders Timacuan Golf Club. The low-density community -- 8.3 homes per acre -- consists of 18 two-story, wood-frame structures built in 1997 and 1998. The complex includes a mix of one-, two- and three-bedroom apartments, each with an attached garage.
Ferrari said the property has been well-maintained, but only a small percentage of the homes have been upgraded since the late 1990s. TruAmerica plans full interior unit renovations, including new appliances and finishes. The company also plans improvements to the community's amenities, including the clubhouse, fitness center, tennis and volleyball courts, and pool areas.
"Rising construction and land costs have made it economically unfeasible to replicate this type of property in the current market environment, which truly makes Legends at Lake Mary an irreplaceable asset," Ferrari said in the statement.
Scott Ramey and Kevin Judd of Newmark Knight Frank Multifamily marketed the property on behalf of the seller. TruAmerica qualified for seven-year, fixed-rate financing through Freddie Mac's Green Loan program by including energy-saving improvements in the renovation plan. Financing for the deal, in the form of a $37.8 million mortgage, was arranged by Newmark Knight Frank's Capital Markets team led by Mitch Clarfield and Ryan Greer.
Legends at Lake Mary is TruAmerica's eight asset purchased in Greater Orlando. The company's most recent buys in the area include the $64-million purchase of the 472-unit Island Club Apartments near Valencia College in Orange County in February, and the $52-million acquisition of the 362-unit Central Park Apartments in Altamonte Springs in January.
Altogether, the LA-based firm now owns 4,400 apartments in Florida. Other communities are in Boynton Beach, Fort Myers and Tampa-Clearwater.
TruAmerica Multifamily is a vertically integrated, value-add investment firm founded in July 2013 in a joint venture between Robert Hart and The Guardian Life Insurance Company of America, according to its website.