TRION PROPERTIES SELLS A 95-UNIT MULTIFAMILY COMMUNITY IN OREGON FOR $19.35 MILLION; ACHIEVING NEARLY 37% IRR
TUALATIN, Ore. (December 20, 2022) – Trion Properties, a multifamily investment sponsor and private equity real estate firm based in West Hollywood, California and Miami, Florida, announces the sale of Fox Meadows, a 95-unit multifamily community located in the Portland submarket of Tualatin, Oregon, for $19.35 million. The property was sold to FPA Multifamily at a return rate of 36.98%, producing a 1.80 equity multiple, after only a two-year hold, according to Max Sharkansky, Managing Partner of Trion Properties.
“Our firm tapped into its deep expertise and business savvy in the Portland market and was able to achieve a very high rate of return on this asset,” says Sharkansky. “We identified an opportunity to purchase the property in the brief multifamily downturn during the pandemic, when it was underwritten fairly conservatively, and capitalized on the right moment to sell when the market is recovering and there are few assets of this type on the sale block.”
Trion has owned and managed 22 properties in the Greater Portland area since 2015 and presently owns 13 assets in this region. With job growth in the metro at 5.3% during Q3 2022, outpacing the national figure of 3.8%, the market is on an upward trajectory that bodes well for the multifamily sector in the foreseeable future, notes Sharkansky.
“In addition to being home to several high-tech manufacturers, Tualatin is located in Washington County, which has been recognized as having the lowest unemployment rate of any other county in the Portland Metro,” says Sharkansky. “As this market continues to rebound from the pandemic, Kidder Mathews reports that multifamily rents are rising and new inventory is in check in Greater Portland, driving demand for high-quality assets like Fox Meadows.”
Built in 1968, Fox Meadows comprises two adjacent properties that Trion combined and managed as one property upon acquisition in 2020. Located less than a mile from Downtown Tualatin, Tualatin WES Metro Station, Tualatin Community Park, and Nyberg Rivers Shopping Center, the community is conveniently situated in a highly regarded school district, close to transportation, employment centers, state-of-the-art medical facilities, and daily-needs retail.
“Fox Meadows is situated in an exceptional location in Tualatin, an affluent submarket where homeownership has become increasingly less affordable and the decline of housing affordability is more extreme than in Washington County overall,” says Farhan Mahmood, Partner and Head of West Coast Acquisitions at Trion Properties. “Along with its strong cash flow, these features made the property extremely attractive to us initially and positions the buyer for ongoing strong returns.”
Offering a healthy mix of floorplans, Fox Meadows features patios and decks on some units as well as townhouse-style units, and common amenities including a swimming pool, laundry facilities, and ample parking and storage.
“We applied our proven rebranding strategy and increased NOI greatly on this property during our hold period,” says Mahmood. “With our strategic forward-looking exit strategy, we were prepared to underwrite the deal at a higher exit cap rate that still reflected the asset’s strong value and high return we achieved.”
Tyler Linn, Jordan Carter, and Clay Newton of Kidder Mathews represented both Trion and the buyer in the sales transaction.
Fox Meadows is located at 19605 SW Boones Ferry Road, Tualatin, Oregon.
About Trion Properties
Founded in 2005, Trion Properties is a private equity real estate firm headquartered in Los Angeles, CA and Miami, FL. Through its proven vertically integrated operating strategy, Trion targets opportunistic multifamily investments in key growth markets throughout the U.S. to increase net operating income and maximize investor returns. Since its inception, Trion has completed more than $1.8 billion in transactions with a portfolio of over $1 billion in assets, generating an average internal rate of return in excess of 25 percent.
Additional information on Trion’s team and investment strategy is available at https://trionproperties.com/.
Additional information on being a media sponsor to promote Trion is available at https://www.vibrantperformance.co/programs/trion-properties/