Trion Refinances Century-Old Asset in MacArthur Park
- May 09, 2016
Los Angeles—The Eleanor is a near century-old apartment community that was recently repositioned and rebranded by local company Trion Properties. The company has tripled its equity since the purchase of the asset, which took place roughly three years ago. During the repositioning process, the owner has invested $4.4 million in the asset, improving occupancy levels in the process.
As a result, the company has leveraged its success to refinance the property and extract its entire original equity, as well as an additional 39 percent, Trion Properties Managing Partner Max Sharkansky pointed out. Local mortgage banking firm Continental Funding Group secured $6.1 million in refinancing, a 67 percent LTV. According to a press statement, the non-recourse loan carries a rate of 3.5 percent for a five-year term.
Located at 412 S. Lake St. in L.A.’s MacArthur Park submarket, The Eleanor consists of 41 residences. Currently operating at full occupancy, the asset features recently renovated art deco design accents, new systems, and modern amenities. According to Sharkansky, “urban infill product throughout Los Angeles is making a tremendous comeback due to the lack of developable land available and the upward pressure on rents throughout the region.” This strategy has paid off at The Eleanor, with the asset now claiming the highest per-square-foot rent rate for a comparable asset in the area.
Image courtesy of Trion Properties.