 |
| Willow Glen Apartments, 3635 College Avenue, San Diego, CA |
SAN DIEGO, CA – Trion Properties,
a private equity real estate firm that specializes in multifamily investments,
has sold Willow Glen Apartments, a 97-unit multifamily community located in the rapidly growing Rolando/College
Area submarket of San Diego, California, for $17.9 million.
Trion purchased the property in June 2015 for $9.6 million. After implementing $2.2 million
in capital improvements and rebranding the community, the firm nearly
doubled the asset’s value and tripled the net operating income within the first
18 months of ownership, according to Max Sharkansky, Managing Partner of
Trion Properties.
 |
| Max Sharkansky |
“When we acquired
this asset less than four years ago, we recognized the opportunity to drive significant value
through strategic renovations and upgrades, as well as improve operational
efficiencies through our vertically-integrated property management platform,”
explains Sharkansky.
“Through
repositioning, hands-on management, and aggressive lease-ups, we transformed
Willow Glen into a strong, cash-flowing asset, successfully stabilizing the property and increasing the
occupancy to 97 percent.
"This has ultimately allowed us to achieve a 37.23 percent return to our investors.”
Sharkansky notes that the property was acquired in one of the lowest
price-per-unit multifamily sales in San Diego in 2015, allowing Trion to invest
more equity in its redevelopment, which also included improving the overall
design of the community.
 |
| Mitch Paskover |
Renovations completed by the firm include the installation of quartz
countertops, stainless-steel appliances, and new cabinetry in each of the
units.
Exterior upgrades include a complete revamping of the façade with new
paint, as well as the integration of low-water and drought-tolerant landscaping
to minimize operating costs and improve the sustainability of the property.
According to Sharkansky, Trion
recognized that San Diego State University students would be a large
prospective resident demographic, due to the community’s close proximity to the
school.
"With this in mind, the firm contracted bulk high-speed Internet
and offered free Wi-Fi, which proved to be highly popular and boosted
leasing.
The principals of Trion Properties are Max Sharkansky and Mitch Paskover, two real estate professionals with over 30 years of combined experience in finance, acquisitions, management and redevelopment.
 |
| Corey McHenry |
The Rolando/College Area of San Diego offers extremely tight
multifamily vacancy of 1.3% and lower rents than nearby comparables. The
submarket also boasts numerous schools, community parks, and retail amenities.
Willow Glen Apartments also offered the buyer, Bernard Xavier, with a rare opportunity to purchase a
well-maintained 97-unit property in a market with such strong demand,
Sharkansky notes.
“As San Diego as a whole and the
College Area submarket in particular continues to generate increasing
multifamily demand and investor interest, we strategically determined that now
was the right time for us to sell this asset,” continues Sharkansky.
“The property presents the buyer with additional value-add opportunity and continued
runway for growth.”
 |
| Peter Scepanovic |
The asset, situated in a primarily single-family-home residential
community, provides convenient access to Interstate 94, Interstate 8, and
employment centers throughout San Diego.
Peter Scepanovic and Corey McHenry of Colliers
International represented Trion Properties as the seller in this transaction.
Founded in 2005 and headquartered
in Los Angeles, Trion Properties is a private equity real estate firm that
invests in value-add multifamily throughout the west coast.
Trion has completed
more than $300 million in transactions, with a portfolio of over $315 million
in assets, generating an average internal rate of return in excess of 30
percent.
 |
| Willow Glen Apartments Interior |
With its fully built-out operator platform, Trion has repositioned and
stabilized undervalued assets, leveraging its expertise in real estate finance
and renovation of multifamily properties to drive returns for its investors.
Since its inception, Trion has
acquired the fee interest—or in certain instances the debt secured by the fee
interest—of over 2,450 multifamily units. To date, Trion has successfully
repositioned and resold over 1,150 units and over 180,000 square feet of
commercial real estate space.
CONTACTS:
Micaela
Fehrenbach / Elisabeth Manville
Brower Group, Inc.
(949) 955-7940
