Sharkansky: We acquired this asset in an off-market transaction at an extremely low cost basis in 2015. It was purchased in one of the lowest price-per-unit sales in San Diego that year, at approximately $98,000 per unit. The acquisition opportunity fit right into our box of targeting underperforming properties under legacy ownership where the seller neglected to amenitize the property at modern standards, thereby charging rents significantly below market.

Within 18 months, we doubled the value of the property and fully stabilized the asset, completing aggressive lease-ups and increasing the NOI by almost 200%.

In 2015, the asset was valued at $9.6 million. Today, it is appraised at approximately $19.4 million. Our ability to transform this property into a strong cash-flowing asset speaks to both the strength of our investment strategy as well as to our vertically integrated property management platform. Based on this turnaround, we refinanced the property and cashed-out the additional equity.

GlobeSt.com: What do you look for in the apartment properties that you acquire for repositioning?

Sharkansky: As value-add investors, we actively source and acquire multifamily properties well-below replacement cost with strong upside potential. We target assets that present an opportunity to implement strategic capital improvements in order to bring rents up to market and increase net operating income.

Our niche investment strategy is to acquire highly underperforming assets in strong central locations, primarily San Diego, Los Angeles, the Bay Area, and Portland, OR. We view these West Coast regions as durable submarkets that are poised for tremendous growth in the long-term and are resilient to economic pressures during downturns. By targeting value-add multifamily assets in these markets, we are able to capitalize on the economic growth of the regions while creating revenue on the asset-level, enabling us to generate strong, risk-adjusted returns to our investors.

The acquisition and repositioning of Willow Glen is well-aligned with our value-add investment strategy. Willow Glen's close proximity to schools such as San Diego State University is a major demand driver that continues to attract a large number of student tenants throughout the area. We target assets located in markets with similar demand drivers such as employment, population growth and high quality of life.

By converting this property into a modern, high-quality community that would appeal to Millennial renters in this market, we were able to leverage this demand and increase occupancy to 95%, transforming Willow Glen into a strong, cash-flowing asset.

GlobeSt.com: What trends are you noticing in the San Diego multifamily market? Are you seeing increased competition for multifamily assets here?

Sharkansky: The San Diego multifamily market continues to demonstrate tremendous growth and investment activity. The limited supply of multifamily product, coupled with the growing demand for high-quality housing, is fueling rental appreciation throughout the region.

Value-add deals are difficult to come by in San Diego, due in large part to the increased competition we are seeing in the market. San Diego is a highly durable market, with strong schools and employers driving resident demand for quality housing in this area. Based on these fundamentals, San Diego remains a desirable and competitive market.

In addition, many of the multifamily investors here are long-term holders. For instance, we acquired this property from a private investor who had owned this asset for over 30 years. Due to our niche focus and expertise in the San Diego market, we were able to source this deal and stabilize the property in record time.

GlobeSt.com: What else should our readers know about Willow Glen?

Sharkansky: In addition to the aesthetic renovations we implemented at Willow Glen, we also integrated cost-effective improvements that minimized our maintenance costs. For example, we installed drought-tolerant landscaping, which reduced water usage and improved the sustainability of the property. This, in turn, minimized our operating expenses and maximized our revenue. Knowing we have a large amount of SDSU students as prospective tenants, we contracted bulk high-speed Internet with Comcast and offered free Wi-Fi, which was a huge boon to our leasing and wildly popular with the tenants.

Our vertically integrated property-management platform enabled us to improve our overall operational efficiencies at Willow Glen, which in turn enhanced the resident experience and maximized our returns as investors.

Looking ahead, we continue to actively seek similar opportunities to drive value through extensive renovations and hands-on management.

SAN DIEGO—By acquiring value-add multifamily properties in key western markets, Trion Properties is able to capitalize on the economic growth of the regions while creating revenue, enabling the firm to generate strong, risk-adjusted returns to investors, managing partner Max Sharkansky tells GlobeSt.com. The private-equity real estate firm that specializes in value-add multifamily investments has successfully repositioned and rebranded Willow Glen, a 98-unit apartment community at 3635 College Ave. here, nearly doubling the value of the property within 18 months, accordingly to Sharkansky.

Located in the rapidly growing College Area submarket of San Diego, the property was purchased in June 2015 at an extremely low-cost basis with strong upside potential, presenting an opportunity to drive significant value for the asset through extensive renovations. Trion invested approximately $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 complete 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.

Through aggressive lease-ups and hands-on management, Trion transformed Willow Glen into a strong, cash-flowing asset. We spoke with Sharkansky about the repositioning and the level of competition for multifamily assets in San Diego.

GlobeSt.com: What stands out for you about this repositioning?

Sharkansky: We acquired this asset in an off-market transaction at an extremely low cost basis in 2015. It was purchased in one of the lowest price-per-unit sales in San Diego that year, at approximately $98,000 per unit. The acquisition opportunity fit right into our box of targeting underperforming properties under legacy ownership where the seller neglected to amenitize the property at modern standards, thereby charging rents significantly below market.

Within 18 months, we doubled the value of the property and fully stabilized the asset, completing aggressive lease-ups and increasing the NOI by almost 200%.

In 2015, the asset was valued at $9.6 million. Today, it is appraised at approximately $19.4 million. Our ability to transform this property into a strong cash-flowing asset speaks to both the strength of our investment strategy as well as to our vertically integrated property management platform. Based on this turnaround, we refinanced the property and cashed-out the additional equity.

GlobeSt.com: What do you look for in the apartment properties that you acquire for repositioning?

Sharkansky: As value-add investors, we actively source and acquire multifamily properties well-below replacement cost with strong upside potential. We target assets that present an opportunity to implement strategic capital improvements in order to bring rents up to market and increase net operating income.

Our niche investment strategy is to acquire highly underperforming assets in strong central locations, primarily San Diego, Los Angeles, the Bay Area, and Portland, OR. We view these West Coast regions as durable submarkets that are poised for tremendous growth in the long-term and are resilient to economic pressures during downturns. By targeting value-add multifamily assets in these markets, we are able to capitalize on the economic growth of the regions while creating revenue on the asset-level, enabling us to generate strong, risk-adjusted returns to our investors.

The acquisition and repositioning of Willow Glen is well-aligned with our value-add investment strategy. Willow Glen's close proximity to schools such as San Diego State University is a major demand driver that continues to attract a large number of student tenants throughout the area. We target assets located in markets with similar demand drivers such as employment, population growth and high quality of life.

By converting this property into a modern, high-quality community that would appeal to Millennial renters in this market, we were able to leverage this demand and increase occupancy to 95%, transforming Willow Glen into a strong, cash-flowing asset.

GlobeSt.com: What trends are you noticing in the San Diego multifamily market? Are you seeing increased competition for multifamily assets here?

Sharkansky: The San Diego multifamily market continues to demonstrate tremendous growth and investment activity. The limited supply of multifamily product, coupled with the growing demand for high-quality housing, is fueling rental appreciation throughout the region.

Value-add deals are difficult to come by in San Diego, due in large part to the increased competition we are seeing in the market. San Diego is a highly durable market, with strong schools and employers driving resident demand for quality housing in this area. Based on these fundamentals, San Diego remains a desirable and competitive market.

In addition, many of the multifamily investors here are long-term holders. For instance, we acquired this property from a private investor who had owned this asset for over 30 years. Due to our niche focus and expertise in the San Diego market, we were able to source this deal and stabilize the property in record time.

GlobeSt.com: What else should our readers know about Willow Glen?

Sharkansky: In addition to the aesthetic renovations we implemented at Willow Glen, we also integrated cost-effective improvements that minimized our maintenance costs. For example, we installed drought-tolerant landscaping, which reduced water usage and improved the sustainability of the property. This, in turn, minimized our operating expenses and maximized our revenue. Knowing we have a large amount of SDSU students as prospective tenants, we contracted bulk high-speed Internet with Comcast and offered free Wi-Fi, which was a huge boon to our leasing and wildly popular with the tenants.

Our vertically integrated property-management platform enabled us to improve our overall operational efficiencies at Willow Glen, which in turn enhanced the resident experience and maximized our returns as investors.

Looking ahead, we continue to actively seek similar opportunities to drive value through extensive renovations and hands-on management.