SACRAMENTO-Los Angeles-based Trion Properties has recently acquired a 185-unit apartment community located in North Highlands, CA, a suburban submarket of Sacramento. The property was purchased for $9.3 million or roughly $50,000 per unit, from a Texas-based seller motivated to sell its west coast assets.
The transaction was brokered by Peter Stevens, Marc Ross and Will Blucher of CBRE, who represented both the buyer and seller.
The property is called Sierra Village and is located at 5416 Jackson St. It was developed in 1986 and offers tenants a strong amenity package including two pools, two spas, a tennis court, and a fitness center. Sierra Village features a favorable unit mix with 41 one-bedrooms, 72 two-bedroom one-bathrooms, and 72 two-bedroom two-bathroom units.
The occupancy at the time of closing was 93%.
Trion's plan is to implement a moderate renovation program, which includes new finishes in the unit interiors. The company expects this to enable them to raise rents to market levels while also implementing cost effective and efficient control systems to lower the property's operating costs. Trion projects an IRR of 20%+ and a strong cash-on-cash return throughout the investment period.
Trion financed this acquisition with senior debt that has a fixed interest rate of 3.25% and a loan-to-value ratio of 80%. The loan was arranged by Mitch Paskover of Continental Funding Group.
This transaction continues the high volume of activity the company has generated over the past year with six acquisitions and four dispositions, according to the firm.
Check back in the next day or so for more on this transaction from Max Sharkansky, managing principal at Trion Properties and why the firm likes the Sacramento market in particular.
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