Done Deals: Trion Properties Successfully Sells Two Upgraded West Coast Multifamily Assets Totaling 108 Units

Sunday, November 17, 2019

Trion Properties Successfully Sells Two Upgraded West Coast Multifamily Assets Totaling 108 Units

67-Unit Bel Aire Court Apartments, Beaverton, OR

Max Sharkansky

LOS ANGELES, CA and BEAVERTON, OR – Trion Properties, a private equity real estate firm that specializes in value-add multifamily investments along the west coast, recently sold two renovated multifamily communities totaling 108 units in Los Angeles, California, and Beaverton, Oregon, according to Max Sharkansky, Managing Partner of Trion Properties.

“The success of these two dispositions is a testament to the continued health of the Los Angeles and Portland areas and high demand for quality multifamily product in these resilient markets, which we’ve been bullish on for the past several years,” says Sharkansky.

“These projects also demonstrate the wide range of our value-add capabilities, from a full rehabilitation and rebranding to light renovations and improved operations, in both cases ultimately bringing something to the market that satisfies today’s resident demands.”

Max Sanchez

The two dispositions include:

Repositioning and Rebranding of Boutique LA Community

Trion Properties has sold The Eleanor, a 41-unit, 1920s-built boutique apartment community in Los Angeles, California, after more than quadrupling the asset’s equity since its acquisition in 2013, according to Sharkansky.

The property, located just west of Downtown LA in the Westlake/MacArthur Park neighborhood, was completely vacant and boarded up when purchased by Trion Properties from St. Vincent Medical Center for just $1.6 million in 2013.

Tony Azzi

Sharkansky adds: “We invested a total of approximately $2.8 million into renovations and successfully brought the property to 100 percent occupancy within 30 months.

"Ultimately, we operated a strong, cash-flowing asset with a 102.65% internal rate of return over a period 74 months, and sold the property for nearly $9 million.”

Max Sanchez, Director of Operations at Trion Properties, explains:

“While our typical value-add strategy is to implement light-to-moderate upgrades on properties of younger vintages, we saw an excellent, rare opportunity to acquire this urban infill location and complete a heavy rehab to capitalize on the upward pressure on rents throughout Los Angeles.

Rabbie Banafsheha

"From the beginning, our goal was to preserve the 1920s charm while also creating a modern feel. We saw opportunities where others saw challenges, and through a collaborative effort, we devised creative ways to get over any humps.”

Tony Azzi and Rabbie Banafsheha of Marcus & Millichap represented Trion Properties as the seller in this transaction.

Light Upgrades and Improved Operations Drive 49% IRR at Beaverton Community

Trion Properties has also sold Bel Aire Court, a 67-unit multifamily community in the Portland submarket of Beaverton, Oregon. The firm’s value-add strategy resulted in a significant 49% internal rate of return on the property during a two-year hold, according to Sharkansky.

Farhan Mahmood

Trion also increased the asset’s value by over 40%, selling the property to a private investor for $13 million after purchasing the property for just over $9 million in 2017. To achieve this return, the team implemented approximately $1.3 million in value-add renovations.

At the time of acquisition, Bel Aire Court was Trion’s fifth multifamily acquisition in the greater Portland area.

“The greater Portland metropolitan area has continued to grow into one of the strongest multifamily markets in the nation, and we will remain an active buyer in these submarkets,” explains Farhan Mahmood, Managing Director of Acquisitions at Trion Properties.

Mitch Paskover

He notes that Beaverton and other suburban cities in the area are seeing even higher percentages of population growth than the still-booming city of Portland.

“We determined that now was the right time for us to sell this particular asset in order to trade our investors into a larger asset and further expand our portfolio.”

Mahmood notes that Bel Aire Court’s positioning within close proximity to the OR-217 freeway, which many residents take to commute to work throughout the Portland metro, and location within a high-quality school district are particularly attractive to residents.

Jordan Carter

Further, the property is just 1.5 miles away from several MAX Blue Line stations, also providing residents with easy access to Downtown Portland, East Portland and Hillsboro.

These appealing location-based and property-level features have resulted in strong interest and retention rates, creating a high cash flowing asset for the new ownership, according to Mahmood.

Clay Newton

Bel Aire Court, a garden-style community consisting of 15 single-story buildings on 16 parcels, is located at 12020-12275 Why Worry Lane in Beaverton, Oregon.

Jordan Carter, Clay Newton and Tyler Linn of Kidder Matthews represented Trion Properties as the seller in this transaction.

The principals of Trion Properties are Sharkansky and Mitch Paskover.