Trion Properties Repositions San Diego Community

A redevelopment program has nearly doubled the asset’s value in just 18 months.

32-061 Willow Glen San Diego Interior (reduced)San Diego—Trion Properties, a private equity firm that specializes in value-add multifamily investments, has completed its repositioning and rebranding of Willow Glen, a 98-unit apartment community at 3635 College Ave. in San Diego. The company said that the property has nearly doubled in value in the 18 months Trion has owned it.

Located in the College Area submarket of San Diego, Trion bought the property in mid-2015 at a low-cost basis with strong upside potential, according to Max Sharkansky, managing partner of Trion. “The limited supply of multifamily product, coupled with the growing demand, is placing upward pressure on rents throughout the region,” he said.

Sharkansky added that the property was acquired in the one of the lowest price per unit multifamily sales in San Diego that year, allowing Trion to invest more equity in its redevelopment. “Our strategy was to leverage demand and bring the asset up to market,” he noted.

The company invested about $2.6 million in renovations, including the installation of quartz countertops, stainless steel appliances, and new cabinetry in each of the units. Exterior upgrades included a revamping of the façade with new paint, as well as the integration of drought-tolerant landscaping to minimize operating costs and improve the sustainability of the property. The company was then able to bring occupancy at the property to about 95 percent.

Continental Partners, a Los Angeles-based mortgage banking firm, secured a $12.8 million loan from Banc of California on behalf of Trion Properties to refinance the asset. The five year-loan was structured with a loan-to-value of 67 percent with an amortization of 30 years.