REDWOOD CITY, CA—A migration to the submarkets continues as tech companies move to the outer reaches of San Francisco. Trion Properties , a Los Angeles-based private equity firm with a niche focus on value-add multifamily investments, has acquired one of those types of assets: a 48-unit, value-add multifamily property, Buckingham Apartments , in an off-market transaction. The apartment community is located at 180 Buckingham Ave. “The Bay Area is one of the strongest markets in the country,” says Max Sharkansky , managing partner at Trion Properties. “The region's record-breaking job growth, coupled with its reputation as one of the nation's largest technology hubs, is driving demand for centrally located, high-quality housing near major employers.” Sharkansky says Redwood City, in particular, is home to a growing cluster of tech companies, and is strategically located between the rapidly expanding job markets of San Francisco and San Jose, which presents an attractive opportunity to cater to the unprecedented renter demand throughout the region. Buckingham Apartments is located right off El Camino Real, in close proximity to Oracle, EA Sports, Google, Facebook and other Fortune 100 tech companies. “There has been a vast migration of businesses to Redwood City as tech firms continue to be priced out of neighboring areas such as Palo Alto. Google, for example, recently acquired one million square feet in the region. Further, Stanford University plans to open a 1.5 million square-foot satellite campus in Redwood City, expanding its presence in this growing market,” says Sharkansky. “The property's proximity to these tech employers, schools and transit options such as Caltrains will spur resident demand, generating strong cash flow and increased net operating income for this asset.” Built in 1964 and 100% occupied, the Redwood City property presented an opportunity for significant value-add renovations to maximize rent growth upon lease rollover. As such, Trion plans to rebrand the apartment community and complete a series of interior and exterior renovations. Interior renovations include the installation of new vinyl plank flooring, modern cabinetry, quartz countertops, kitchen appliances and tonal painting. In addition to these interior upgrades, Trion Properties plans to implement a completely new design to the entryway, revitalize the hallways and create a tenant lounge to build a sense of community for residents, particularly catering to young working professionals. Sharkansky tells GlobeSt.com: “Our strategy is to target value-add multifamily product in neighborhoods on the cusp of significant economic growth and development located within primary urban-infill markets. Redwood City is one of those up-and-coming neighborhoods and we see tremendous opportunity to add value here. We plan to reposition and rebrand the property, ultimately capitalizing on the continued growth of the region and generating outsize risk-adjusted returns for investors. Rents at the property are currently 40% below average rents in the surrounding area, indicating enormous upside potential as we bring rents up to market.” Sharkansky notes that it is rare to source a multifamily property well-below replacement cost in a market like the Bay Area with favorable economic fundamentals and strong demographics. Redwood City boasts a median household income of $77,561 and continues to demonstrate steady rent growth. “Rents at this property are currently 40% below market value, indicating tremendous upside potential,” adds Farhan Mahmood , director of acquisitions at Trion Properties. “By repositioning and renovating this asset, we plan to bring rents up to market value while delivering an institutional-quality product at a huge discount to newer construction.” Buckingham was acquired from a private investor for $15 million. Continental Funding Group arranged the financing. Robert Johnston and Adam Levin of Marcus & Millichap represented both the buyer and the seller in this transaction. Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more. REDWOOD CITY, CA—A migration to the submarkets continues as tech companies move to the outer reaches of San Francisco. Trion Properties , a Los Angeles-based private equity firm with a niche focus on value-add multifamily investments, has acquired one of those types of assets: a 48-unit, value-add multifamily property, Buckingham Apartments , in an off-market transaction. The apartment community is located at 180 Buckingham Ave. “The Bay Area is one of the strongest markets in the country,” says Max Sharkansky , managing partner at Trion Properties. “The region's record-breaking job growth, coupled with its reputation as one of the nation's largest technology hubs, is driving demand for centrally located, high-quality housing near major employers.” Sharkansky says Redwood City, in particular, is home to a growing cluster of tech companies, and is strategically located between the rapidly expanding job markets of San Francisco and San Jose, which presents an attractive opportunity to cater to the unprecedented renter demand throughout the region. Buckingham Apartments is located right off El Camino Real, in close proximity to Oracle, EA Sports, Google, Facebook and other Fortune 100 tech companies. “There has been a vast migration of businesses to Redwood City as tech firms continue to be priced out of neighboring areas such as Palo Alto. Google, for example, recently acquired one million square feet in the region. Further, Stanford University plans to open a 1.5 million square-foot satellite campus in Redwood City, expanding its presence in this growing market,” says Sharkansky. “The property's proximity to these tech employers, schools and transit options such as Caltrains will spur resident demand, generating strong cash flow and increased net operating income for this asset.” Built in 1964 and 100% occupied, the Redwood City property presented an opportunity for significant value-add renovations to maximize rent growth upon lease rollover. As such, Trion plans to rebrand the apartment community and complete a series of interior and exterior renovations. Interior renovations include the installation of new vinyl plank flooring, modern cabinetry, quartz countertops, kitchen appliances and tonal painting. In addition to these interior upgrades, Trion Properties plans to implement a completely new design to the entryway, revitalize the hallways and create a tenant lounge to build a sense of community for residents, particularly catering to young working professionals. Sharkansky tells GlobeSt.com: “Our strategy is to target value-add multifamily product in neighborhoods on the cusp of significant economic growth and development located within primary urban-infill markets. Redwood City is one of those up-and-coming neighborhoods and we see tremendous opportunity to add value here. We plan to reposition and rebrand the property, ultimately capitalizing on the continued growth of the region and generating outsize risk-adjusted returns for investors. Rents at the property are currently 40% below average rents in the surrounding area, indicating enormous upside potential as we bring rents up to market.” Sharkansky notes that it is rare to source a multifamily property well-below replacement cost in a market like the Bay Area with favorable economic fundamentals and strong demographics. Redwood City boasts a median household income of $77,561 and continues to demonstrate steady rent growth. “Rents at this property are currently 40% below market value, indicating tremendous upside potential,” adds Farhan Mahmood , director of acquisitions at Trion Properties. “By repositioning and renovating this asset, we plan to bring rents up to market value while delivering an institutional-quality product at a huge discount to newer construction.” Buckingham was acquired from a private investor for $15 million. Continental Funding Group arranged the financing. Robert Johnston and Adam Levin of Marcus & Millichap represented both the buyer and the seller in this transaction. Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.