Trion Properties Acquires Two East Bay Communities
- Feb 11, 2016
San Francisco—The hot Bay Area real estate market is only getting hotter this year, and investors are taking note. Los Angeles-based Trion Properties recently completed the acquisition of two Bay Area apartment communities for roughly $13.6 million.
Located in San Leandro and Hayward, the two communities add 68 units to the equity firm’s residential portfolio. Continental Funding Group of Los Angeles provided debt for both transactions—a 70 percent loan-to-cost floating-rate loan at an interest rate of 3.5 percent over LIBOR.
The Hayward, Calif. apartment community is located at 23924 2nd St. and consists of 30 apartment units. Offering easy access to two nearby BART stations, an Amtrak station and the San Francisco International Airport, the asset also benefits from downtown Hayward’s recent $105 million overhaul. The Hayward Loop project has made transit in the area more efficient, while a number of cosmetic enhancements have also made the area more desirable for potential tenants. The new owner is looking to apply a capital improvement program of roughly $713,000, to include the addition of vinyl wood plank flooring, new countertops, stainless steel appliances, new cabinetry, lighting fixtures and smart locks. Tom Hyman of Highland Investment Properties Inc. brokered the $6.6 million transaction.
Located at 348 Estabrook St. in San Leandro, the second apartment community was acquired by Trion in a joint venture with Holualoa Cos. The $7.2 million deal was arranged by Eduardo Vergara of Marcus & Millichap. The property consists of 38 apartment units in close proximity to transportation lines, the Oakland International Airport, and the San Leandro Technology Campus. A $1 million improvement budget is lined up for the property, with similar upgrades meant to be added to the units.