Trion Properties Repositions and Sells Retail Asset in Rapidly Growing Santa Clarita Submarket of Los Angeles, CA

Valencia Town Center Plaza, Santa Clarita Submarket, Los Angeles, CA

VALENCIA, CA – Trion Properties, a Los Angeles-based private equity real estate firm, has repositioned and sold the Valencia Town Center Plaza, a 26,186 square-foot retail strip center located in the Santa Clarita submarket of Los Angeles, for $9.8 million.

“We recognized the potential of this asset early on, and successfully executed our value-add strategy to generate significant returns on our investment,” says Max Sharkansky, Managing Partner of Trion Properties.

Max Sharkansky

“When we acquired this property three years ago, the occupancy had fallen below 50 percent, presenting an opportunity for us to increase net operating income through aggressive leasing and cosmetic upgrades. 

"We brought the asset to nearly full occupancy and sold it at a premium price, achieving our targeted returns within a short-term hold period.”

Trion had purchased the property in October 2013 well-below replacement cost for $6.8 million, at a time when the Valencia retail market was still recovering from the economic crisis.

 During ownership, Trion more than doubled the asset’s occupancy and repositioned the retail storefront by attracting desirable tenants, implementing property-level renovations, and enhancing the overall curb appeal of the property.

The strength of the property’s tenant mix, coupled with its prime location in the heart of Valencia’s retail and business district, attracted strong investor interest and resulted in competitive pricing for this asset, according to Sharkansky.

“Retail in Santa Clarita is experiencing a tremendous amount of absorption relative to the amount of product being delivered to the market,” continues Sharkansky. “Annual net absorption for retail is approximately 110,000 square feet, while new deliveries to the market are at a low 10,000 square feet, resulting in a drop in vacancy to a historic low of 5.2 percent. Based on these strong fundamentals, we recognized that now was the most opportune time to sell this asset.”

For a complete copy of the company’s news release, please contact:

Lauren Burgos/ Katie Kea

Brower, Miller & Cole

(949) 955-7940

lburgos@browermillercole.com