By Evelyn Jozsa
Trion Properties has purchased an 88-unit multifamily asset for $26.5 million, in Fremont, Calif. Continental Partners arranged a $19.75 million bridge loan for the acquisition and $10.75 in joint venture equity for the property. NAI Capital represented Trion Properties and Makras Real Estate worked on behalf of the seller, the Jones Family, in the transaction.
The buyer is a private equity real estate firm with a niche focus on value-add multifamily investments. This is the company’s fifth acquisition in the Bay Area in less than two years, and its plans include a strategic renovation of the apartment community that is meant to stabilize the asset and increase its net operating income.
“This asset was a rare find, as it was well-maintained for its vintage while presenting huge upside potential,” said Max Sharkansky, managing partner of Trion Properties, in prepared remarks. He also mentioned that the property had been owned by the same family since its construction in 1966.
Located at 4445 Stevenson Blvd., Americana Apartments, will be rebranded as Parc 88. Trion plans to modernize the asset through a series of exterior and interior upgrades. The units will cost approximately $900-$1000 less than new construction units per month.
“Our previous experience in the area and our vertically-integrated property management platform will allow us to reposition this apartment community into a competitive complex that will improve our residents’ quality of life and result in favorable returns,” added Sharkansky.
After the interior renovation, each unit will include faux wood plank flooring, quartz countertops, updated cabinetry and washer and dryer units. Exterior remodeling plans include updating the signage of the apartment and landscaping its 4.4 acres of greenspace.
Community amenities include:
- on-site laundry facility
- gated community
- recreation area
- video surveillances
- parking garages
Growing demand for housing
The property is situated less than five miles from Fremont’s Tesla factory, one of the most technologically-advanced automotive factories in the world, which currently has more than 6,000 employees. Tesla factory is situated on 5.3 million square feet and will further expand with 4.6 million square feet, and will bring 3,100 new workers to the area. This will result in further demand for multifamily housing in the area.
“Fremont is centrally located in the East Bay and the northern part of Silicon Valley, a region that is experiencing tremendous growth,” said Sharkansky. “The market benefits from the expansion of the technology sector as companies are moving across the Bay into this submarket.” The city of Fremont will benefit from the extension of the Bay Area Rapid Transit, which will more effectively connect the East Bay to Silicon Valley. This will increase the need for multifamily housing as well.
Image courtesy of Trion Properties