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Trion Properties is growing its Bay Area portfolio. Trion and JV partner DVO Real Estate acquired Bel Brook and Hideaway Apartments, a 146-unit complex at 77-85 Estabrok St. in San Leandro, for $36.6M.
Bell Brook and Hideaway was built in 1967 and was 94% occupied at acquisition. It is a well-maintained complex with strong in-place cash flow with good upside potential. Trion will upgrade the property to bring rents up to market and increase net operating income.
Upgrades will include interior renovations, such as new vinyl wood plank flooring, stainless steel kitchen appliances, modern cabinetry, high-end finishes and bathroom upgrades. Exterior improvements will include a rebrand of the property, new signage, and upgrades to the leasing office, pool, fitness center and recreational center.
This latest acquisition is Trion’s fourth Bay Area buy within the last 15 months. The company has a Bay Area portfolio of 262 units, according to Trion Properties managing partner Max Sharkansky. The company bought two value-add multifamily assets in Hayward and San Leandro in 2016.
Sharkansky said the East Bay is undergoing rapid growth as major tech giants and employers expand their presence in this region. Uber is expanding into Oakland, while Tesla has brought thousands of high-paying jobs to Fremont.
“San Leandro is thriving and experiencing tremendous revitalization, making it poised for long-term growth and investment potential,” Sharkansky said. “The enormous job growth throughout this region is driving demand for quality housing located in close proximity to transit options and major employers.”
Trion’s new asset is within walking distance of a BART station and a mile away from the San Leandro Technology Campus, a 750K SF mixed-used development expected to bring 1,800 tech jobs to the area. San Leandro has three of the Bay Area’s largest craft breweries and a downtown district with retail and restaurants. A 40-acre mixed-used development, San Leandro Monarch Beach, is expected to break ground in 2017.
The apartment complex is close to Trion’s other East Bay assets, which will allow the company to amass economies of scale and strengthen operational efficiencies, according to Sharkansky. It is a block away from Trion’s Metro348 property, which has a diverse mix of tenants working within the technology and industrial sectors.
The Trion JV acquired this property from the John Sullivan family. Continental Partners through NXT Capital arranged acquisition financing. Newmark, Cornish & Carey senior vice president John Leyvas Jr. and director Brad Lehman repped both the buyer and the seller.
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