The firm will implement its value-add renovation program at the properties
SACRAMENTO, Calif., (December 6, 2021) – Trion Properties, a private equity real estate firm based in West Hollywood, California and Miami, Florida specializing in multifamily investments, has acquired six multifamily communities totaling 347 units in the Sacramento, California area for $71.6 million.
The firm re-entered the Sacramento market a year ago with the acquisition of a 136-unit community in Rancho Cordova, after bringing three properties in the market full cycle from 2012 to 2016. Additionally, the firm currently owns and manages six properties in nearby East Bay.
This experience in the area, combined with increasing housing demand, has made Trion well positioned to strategically seek out properties that can be repositioned to provide strong long-term value, according to Max Sharkansky, Managing Partner at Trion Properties.
“Accelerated demand has outpaced supply in Sacramento, through a combination of migration, historically lower rents, and skyrocketing single-family home prices,” says Sharkansky. “While California lost 182,000 residents last year, the Sacramento region has continued to grow.”
Sharkansky notes that much of this growth was driven by migration from San Francisco-Oakland-Berkeley area. With many businesses remaining remote or hybrid for the foreseeable future, Sacramento offers a lower cost of living while positioning residents close enough for the occasional commute to the Bay Area’s employment hubs.
Farhan Mahmood, Trion’s Managing Director, Acquisitions, adds: “Relative affordability and high quality of life has made Sacramento one of the most in-demand markets in the country. We expect this will continue as the region is seeing significant infrastructure investment and the development of retail, office, and healthcare properties. By acquiring these six communities with strong upside potential and leveraging our experience and local connections, we will be able to make strategic upgrades that will help drive long-term resident demand and fill the void for high-quality housing in the Sacramento area.”
The acquisitions include the purchase of a single 198-unit property as well as a portfolio of five properties totaling 149 units:
ReNew Carmichael in Carmichael, California
Trion Properties has acquired ReNew Carmichael, a 2-story, 198-unit garden-style multifamily community in Carmichael, California for $46 million.
The Sacramento suburb currently has a low housing stock and record-low vacancy of just 1.6%, according to Sharkansky.
“Given the high demand and lack of available housing in the market, there is a strong opportunity to increase current asking rents and provide a long-term cash flowing asset,” explains Sharkansky. “The previous owner renovated 38% of the units at the property, investing more than $4 million. Our experience in value-add renovations puts us in an excellent position to continue implementing strategic upgrades and further enhance curb appeal.”
ReNew Carmichael is located at 6930 Fair Oaks Boulevard in Carmichael, California. Competitive community amenities include two pools, a fitness center, package lockers, and a club lounge.
Continental Partners arranged $33.99 million in financing for the acquisition. Jason Parr and Scott MacDonald of Cushman and Wakefield represented Trion in the transaction.
Portfolio of Five Multifamily Communities Totaling 347 Units in the Sacramento Area
Trion Properties has acquired a portfolio comprised of five multifamily communities totaling 149 units in Greater Sacramento for $25.6 million.
The properties include:
- Fairway Commons, an 84-unit community in Arden-Arcade, California. The submarket’s vacancy currently sits at just 2.3%, with zero units currently under construction.
- Diablo Riviera,a 32-unit apartment community, situated on 1.36 acres, that is also located in Arden-Arcade.
- San Joaquin Place Apartments,a 15-unit apartment community located in the Tahoe Park neighborhood of Sacramento.
- G Street Townhomes,a 14-unit townhome community located in Midtown, which is a historical district just east of Downtown Sacramento that offers residents a variety of nearby dining and entertainment options.
- 815 18th St,a 4-unit condominium complex also located in Midtown.
“This portfolio presented an excellent opportunity to strengthen and diversify our footprint in the Sacramento area with five properties located in strategic submarkets,” explains Mahmood. “By enacting strategic value-add enhancements to the interiors and exteriors, we aim to improve the quality of life for residents while maximizing returns for our investors.”
Mahmood notes that Trion plans to renovate and hold each of the properties for periods ranging from 1 to 2 years.
Continental Partners arranged the $19.83 million financing for the acquisition. Shivu Srinivasan and Robert Dau of Transwestern represented Trion in the transaction.
About Trion Properties
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 $1 billion in transactions, with a portfolio of over $700 million in assets, generating an average internal rate of return in excess of 30 percent. 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 3,550 multifamily units. To date, Trion has successfully repositioned and resold over 1,750 units and over 200,430 square feet of commercial real estate space. 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.