Sierra Village, Sacramento CA

Opportunity to acquire an asset in the North Highlands submarket of Sacramento out of a portfolio sale through the fee simple purchase from a Texas-based owner who was unable to efficiently manage the asset. The property required a renovation program updating the units to modern standards and improving the common areas and amenities for the tenants. The average rents will be increased by over 20% bringing the post-renovation return on cost to approximately 8%. Upon completion of the repositioning and stabilization, the asset will be refinanced with permanent debt.

Property Details:
No. of Units: 185
Acquisition Date: January 2014
Acquisition Price: $9,300,000
Renovation Costs: $1,200,000
Projected Equity IRR: 27%

 

412 S. Lake Street, Los AngeleS CA

Opportunity to acquire an asset directly west of Downtown Los Angeles from a nonprofit that grossly mismanaged the property during its ownership. The property was 100% vacant at closing and requires significant renovation which allows Trion to reposition the property into what is essentially new construction product in an urban infill location. The renovation program will consist of replacing all of the systems, renovating the interior hallways with new carpet, paint and lighting, and redesigning the interiors of the units. Following the construction and renovation phase, Trion will implement an aggressive leasing program stabilizing the property at 97% occupancy. The property will be either refinanced or sold upon stabilization.

Property Details:
No. of Units: 41
Acquisition Date: August 2013
Acquisition Price: $1,600,000
Renovation Costs: $750,000
Projected Equity IRR: 40%

 

Canyon Del Sol, Fresno CA

Opportunity to acquire an asset in Fresno through fee simple purchase out of a Special Servicer’s REO portfolio. At close of the acquisition the property was approximately 50% vacant and required an extensive renovation of the common areas and the interiors of the units. Upon completion of the renovations an aggressive leasing program will commence to increase the occupancy to 90%+ and ultimately stabilize the asset. Upon stabilization the asset will be listed and sold with the procuring broker.

Property Details:
No. of Units: 124
Acquisition Date: July 2012
Acquisition Price: $3,260,000
Renovation Costs: $650,000
Projected Equity IRR: 50%