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The basics:

• TruAmerica Multifamily enters NJ market Somerset acquisition
• Firm adds 384-unit Class A apartment community The Grove Somerset
• CBRE arranged off-market transaction; property is 94% occupied
• New owner targets interior renovations while maintaining relative affordability

One of the largest U.S. multifamily owners, TruAmerica Multifamily, has entered the New Jersey market with an assist from CBRE.

The Los Angeles-based buyer added The Grove Somerset in Franklin Township at 500 Bristol Blvd. to its portfolio. Completed in 2013, the Class A community includes 384 units.

The Garden State debut adds a property in desirable Somerset County that affords amble access to the wider state and region. It also brings value-add upside for the new owner. The buyer was not disclosed.

A CBRE team led by Vice Chairman Jeffrey Dunne, First Vice Presidents Stuart MacKenzie and Eric Apfel, and Senior Financial Analysts Travis Langer and Eric Greenberg announced the off-market deal June 24. The property is 94% occupied, the firm told NJBIZ.

According to Dunne, institutional interest in the New Jersey-New York Metro suburbs continues to grow. Touching on plans for renovations, MacKenzie described the property as “well-suited to TruAmerica’s investment strategy.”

Originally developed by Avalon Bay Communities, the community previously sold in 2021. At that time, a joint venture between Harbor Group International and Azure Partners acquired the property.

Inside The Grove Somerset

TruAmerica Multifamily Chief Investment Officer Noah Hochman affirmed the region’s perks, saying they align with many characteristics that define the company’s most successful investments nationwide. In particular, he noted, “exceptional employment diversity and scale, favorable supply dynamics, and housing affordability trends that continue to support long-term renter demand.”

“The Grove Somerset provides an opportunity for TruAmerica to enter one of the nation’s most resilient multifamily markets through a high-quality asset acquired off-market at a meaningful discount to replacement cost,” Hochman continued.

Situated on 42 acres, the unit mix at The Grove Somerset comprises studio, one-, two- and three-bedroom homes. It also features townhome-style residences with attached garages. Community amenities include an oversized pool with sundeck, resident clubhouse with lounge area, business center, 24-hour fitness center, EV charging stations and a dog park.

The Grove Somerset is near New Brunswick, with NJ Transit and Amtrak services. The growing Middlesex County seat also affords entertainment, employment, education and other opportunities. Additionally, it offers convenient access to Interstates 287 and 95, along with Route 1.

Commented TruAmerica Multifamily Executive Managing Director and Head of Acquisitions Wes LaBar, “With approximately 95% of unit interiors remaining in original condition, we see a compelling opportunity to thoughtfully modernize the community.”

New ownership says it will focus renovations on upgrading apartment interiors and enhancing the resident experience. However, it says the property will still maintain its “affordability relative to newer rental communities.”

TruAmerica has not yet responded to a query regarding the purchase price or anticipated value of renovations at The Grove Somerset.

Hochman described the acquisition as a natural extension of TruAmerica’s Northeast investment strategy and broader national platform. According to the company, it has owned and operated approximately 4,600 apartment units across 21 properties in the Northeast, to date.