REAL ESTATE NEWS

TruAmerica and Manulife are joining forces to form a $1 billion joint venture that aims to secure affordable housing.

The two firms noted they are looking to swoop in and provide solutions, as demand for affordable housing is significantly outpacing the available inventory in the segment, which impacts middle and low-income renters the most. As a result, the JV will preserve access to affordable housing in efforts to narrow the imbalance.

To start off, a new platform has launched called Anchor Point Residential. Already, the strategy has bought a 6,000-unit portfolio across 51 properties, mainly in West Coast markets. This includes Metro areas such as Sacramento, Bakersfield, Palmdale, Austin, Houston, Dallas-Fort Worth, Los Angeles, San Diego and Orange County.

“The residential market has proven resiliency largely stemming from undersupply of housing. This portfolio, and the broader strategy, demonstrates durable cash flow supported by stable occupancy and a fundamental shortage of housing meeting this level of affordability," Jessica Harrison, head of transactions & capital markets for Manulife North America, said in a statement.

"This transaction was highly structured, with the goal of preserving long term viability and the potential for strong performance. In this environment, sourcing and structuring complex solutions provides a competitive edge in positioning portfolios."

TruAmerica's full U.S. apartment portfolio includes more than 60,000 apartment units through over 30 markets and 300-plus properties.

Meanwhile, a recent CoStar Group multifamily rent trends report shows that national trends are softening. In August, rents fell by 0.23% to $1,713. The pullback was most pronounced in the West, where rents fell 0.5% month-over-month, and the South, which saw a 0.4% drop.

Source: GlobeSt/ALM