Dealmaker: Trion Properties Pays $37M for California Apartments

Trion Properties, Los Angeles, and joint-venture partner DVO Real Estate, New York, acquired Bel Brook and Hideaway Apartments in San Leandro, Calif., for $36.6 million.

The John Sullivan family sold the 146-unit value-add multifamily property. Newmark, Cornish and Carey Senior Managing Director John Leyvas Jr. and Director Brad Lehman represented both buyer and seller. Continental Partners, Los Angeles, arranged financing through NXT Capital, Chicago.

Trion Properties Managing Partner Max Sharkansky noted that San Leandro has experienced “tremendous” revitalization, “making it poised for long-term growth and investment potential,” he said. “The enormous job growth throughout this region is driving demand for quality housing located in close proximity to transit options and major employers.”

Sharkansky noted that the East Bay market has grown rapidly as major tech employers expand their presence. “Uber will relocate its corporate headquarters to Oakland while Tesla has brought thousands of high paying jobs to Fremont,” he said.

The 1967-vintage property was 94 percent occupied at acquisition. Sharkansky said Trion plans to upgrade the property to bring rents up to market and increase net operating income.

In addition to interior upgrades, the firm will rebrand the property through exterior improvements, including new signage and upgrades to the leasing office, pool, fitness center and recreational center.

The acquisition represents Trion Properties’ fourth Bay Area acquisition in less than 15 months, bringing its existing Bay Area multifamily portfolio to 262 units, Sharkansky said.