Trion Properties Launches First Fund

Mitch Paskover is the co-founder and managing partner of Trion Properties.

LOS ANGELES— Trion Properties has launched its first investment fund. The $30 million fund will deploy $100 million capital, targeting multifamily value-add investments in four core West Coast markets: Los Angeles, San Diego, the bay area and Portland. The fund will purchase individual assets for $5 million to $20 million, and spend an additional $10,000 to $15,000 per unit on renovations. “In order for a company like ours to have a fund, you need to have a number of years of experience, and I think we have hit a point now as a company where we have bought and renovated a number of deals and sold them,” Mitch Paskover , the firm’s co-founder and managing partner, tells GlobeSt.com. “So, we have a good track record to show that we have made money for our investors and have hit our targets. Now, we have decided to launch a $30 million fund that will have the ability to purchase $100 million worth of properties. We are going to target, like we always do, value-add multifamily in the four to five market markets that we have been targeting since day one.” Investors in the fund will include high net worth individuals, family offices and registered investment advisors, and contributions will range from $50,000, for high net worth individuals, to $1 million, for family offices, with substantial returns of 16% to 18%, according to Paskover. “We have exceeded that in the past, but with the market the way it is right now, we are being a little more conservative on our deals,” he adds. “Most of our investors are very happy with 16% returns. We are going to get long-term loans with no short-term risk and get less leverage to give us that 16% to 18% target.” Trion Properties already has seasoned investing chops, with $100 million in closed transactions and an internal return rate of 20% to 30%. With the market tightening, especially for value-add investors , this fund will help give the firm an additional competitive advantage to continue to grow. “When we raise a fund up front, we have a leg up on other buyers because we can tell the seller that our money is already set aside and we aren’t going to have an issue raising equity,” adds Paskover. “Now, people are starting to get a little worried about what is going on in the market. If you have a fund like this and the money set aside, you can go ahead and buy quickly. That is going to give an advantage.” While the fund has an “open life,” Paskover estimates the fund will run for six to seven years. “We will go ahead and buy properties immediately, once the funds are raised,” he adds.