JV Nabs $37M East Bay Value-Add Apartments

by Ariela Moraru

Bel Brook and Hideaway Apartments, San Leandro, Calif.

Trion Properties and its joint-venture partner DVO Real Estate have purchased Bel Brook and Hideaway Apartments from the John Sullivan family for $36.6 million. Acquisition financing for the 146-unit value-add multifamily property in the East Bay was arranged by Continental Partners through NXT Capital. John Leyvas Jr. and Brad Lehman of Newmark Cornish & Carey represented both the buyer and the seller in this transaction.

Located at 77-85 Estabrook St. in the supply-constrained submarket of San Leandro, Calif., the property has easy access to I-880 and I-580. The community is near downtown San Leandro, the weekly Farmer’s Market and within walking distance to schools, shops, restaurants and a BART station. The community features studio, one-, two- and three-bedroom floor plans. Amenities include private patios or balconies, on-site laundry facilities, a swimming pool with solar heating, fitness center and party room.

The firm plans to modernize the 1967 property which has a B- improvements rating according to Yardi Matrix and was 94 percent occupied at the time of the acquisition. Strategic interior and exterior renovations include the installation of new vinyl wood plank flooring, stainless steel kitchen appliances, modern cabinetry, high-end finishes, bathroom upgrades, new signage, as well as upgrades to the leasing office, pool, fitness center and recreational center. The company has executed a similar value-add investment strategy with Metro348, a property which is only a block away.

Bel Brook and Hideaway Apartments, San Leandro, Calif.

“San Leandro is thriving and experiencing tremendous revitalization, making it poised for long-term growth and investment potential,” Max Sharkansky, managing partner at Trion Properties, said. “Located in the heart of the dynamic East Bay, this property is within walking distance to a BART station and a mile away from the San Leandro Technology Campus, a 750,000 square-foot mixed-use development which will bring an estimated 1,800 tech jobs to the area. The enormous job growth throughout this region is driving demand for quality housing located in close proximity to transit options and major employers.”

Sharkansky notes that the entire East Bay is undergoing rapid growth, driven by major tech giants and employers expanding their presence in this region. Uber is moving to Oakland, while Tesla has brought thousands of jobs to Fremont. In addition, San Leandro is home to three of the Bay Area’s largest craft breweries, a thriving downtown district and the San Leandro Monarch Beach, a 40-acre mixed-use development anticipated to break ground this year.

This is Trion Properties’ fourth Bay Area acquisition in less than 15 months, bringing its existing Bay Area multifamily portfolio to a total of 262 units. Trion also acquired two value-add multifamily assets in Hayward and San Leandro last year. To date, Trion has repositioned and resold over 795 units totaling over 50,000 square feet of commercial real estate space.

Images courtesy of Trion Properties and Yardi Matrix