Subsidiary funds of asset management firms Ares Management and TruAmerica Multifamily announced Tuesday they have acquired a 240-unit apartment building in Avondale, Ariz., in a transaction valued at nearly $31 million.

The acquisition of Broadstone Gateway marks the second investment for the Ares-TruAmerica joint venture, which in November acquired a 1,400-unit multifamily portfolio in Baltimore for $236 million.

Broadstone Gateway is located 20 miles west of downtown Phoenix.

Ares and TruAmerica plan to immediately invest millions into renovating the units with new finishes as well as revamp the pool area, clubhouse, fitness center and landscaping, according to a statement.

West L.A.’s TruAmerica specializes in acquiring and renovating Class B multifamily properties. Class B properties are a step down from Class A, a status given the highest-quality buildings that are typically newer and command higher rents.

“Avondale is an example of the first ring suburban submarket in which we typically invest and can add meaningful value,” Noah Hochman, senior managing director of capital markets for TruAmerica, said in a statement. “We look for areas with great schools and a transportation infrastructure in place that allows residents to easily commute to jobs in the region.”

TruAmerica manages a $6.7 billion portfolio of around 32,000 units in several states. Downtown-based Ares Management manages about $100 billion in assets, including real estate, private equity and credit, according to the statement.

Residential real estate reporter Helen Zhao can be reached at [email protected]. Follow her on Twitter @zhaomeow.