TRION PROPERTIES SELLS EDISON MULTIFAMILY COMMUNITY FOR A RESOUNDING 77.3% IRR
With strategic timing and market knowledge, the firm achieves significant return following an 18-month hold
Gresham, Ore., (April 18, 2022) – Trion Properties, a private equity real estate firm based in West Hollywood, California and Miami, Florida specializing in multifamily investments, has sold Edison Apartments, a 64-unit apartment community in Gresham, the largest suburb of Portland, Oregon, for $19.5 million.
The firm initially acquired the asset for $12 million in October 2020, according to Max Sharkansky, Managing Partner at Trion Properties.
“We purchased this newly built property just as it obtained a certificate of occupancy in 2020, identifying it as an excellent opportunity to add a modern multifamily community to our portfolio at far below replacement cost,” explains Sharkansky. “Following several years of building a well-positioned portfolio of multifamily communities in markets with proven resilience throughout economic cycles, we were strongly capitalized and able to act quickly to seize this opportunity. We ultimately leveraged the strength of the property, the location, and the increasing demand for suburban life, to lease up the asset and generate a significant return within just 18 months.”
Sharkansky notes that the success of this investment speaks to Trion’s ability to strategically source acquisitions, build and maintain relationships in our target markets, and remain nimble during unprecedented times like the early months of the pandemic.
“This was a departure from our typical strategy in the Portland area of acquiring apartment communities of older vintages and implement light-to-moderate value-add renovations,” explains Sharkansky. “With strategic timing and effectively communicating the strengths of the property and market with the team at Kidder Mathews, who were instrumental in making the deal happen and went above and beyond to ensure a successful sale, we were able to sell the asset for well over the initial purchase price.”
Portland was ranked in the top 10 on U.S. News & World Report’s list of the 150 Best Places to Live in the U.S. in 2021-2022 and has and has consistently ranked as one of the top cities for in-migration over the last several years. As there continues to be an influx of new residents to the Portland metro, it is expected vacancy will decline significantly and rents will continue to rise. Gresham is projected to be one of the best rent growth areas in the Portland metro area as population growth continues to outpace housing supply, creating a competitive rental market, notes Sharkansky.
“The city of Gresham is the manufacturing and distribution hub of Portland, with industrial tenants continuously flocking to the area,” adds Sharkansky. “With the ongoing boom of industrial asset classes, Gresham is well positioned to continue to benefit from economic expansion tied to the rise of the e-commerce industry. The continued expansion has led to an increased need for quality housing to support the growing population of employees. Despite the increasing population, new construction has been limited as developers have focused on Portland’s core during the economic expansion. The result has been a submarket with some of the tightest vacancy rates and fastest rising rents in the state.”
Sharkansky notes that Gresham continues to appeal to residents looking to enjoy the peacefulness and affordability of suburban life, while still being close enough to downtown areas to experience the benefits of city living—a demand that has increased throughout the pandemic due to factors such as remote work giving increased flexibility.
Completed in 2020, The Edison Apartments have a contemporary style consisting of 64 spacious units with a condominium-quality finishes. The property consists almost entirely of spacious two bedroom, two bath units with in-unit washer/dryers. In-unit amenities also include modern stainless-steel appliances, granite countertops, air conditioning in every unit, modern wood blinds, large windows, and a storage unit with every unit.
Community amenities include on-site parking, a communal picnic area, children's playground, beautifully landscaped grounds, and video surveillance for added safety.
The property is located less than a mile away from the MAX Light Rail Gresham Station which connects Gresham to downtown Portland, Beaverton and Hillsboro, as well as the Portland International Airport. The property is also a 5-minute drive from historic downtown Gresham and less than an hour away from summer and winter adventures in the Mt. Hood National Forest.
Edison Apartments is located at 1833 SE 6th Street in Gresham, Oregon. Jordan Carter, Tyler Linn, and Clay Newton of Kidder Mathews represented Trion Properties as the seller in this transaction.
About Trion Properties
Founded in 2005 and headquartered in Los Angeles, Trion Properties is a private equity real estate firm that invests in value-add multifamily throughout the west coast. Trion has completed more than $1.2 billion in transactions, with a portfolio of over $1 billion in assets, generating an average internal rate of return in excess of 30 percent. With its fully built-out operator platform, Trion has repositioned and stabilized undervalued assets, leveraging its expertise in real estate finance and renovation of multifamily properties to drive returns for its investors.
Since its inception, Trion has acquired the fee interest—or in certain instances, the debt secured by the fee interest—of over 4,200 multifamily units. To date, Trion has successfully repositioned and resold over 1,750 units and over 200,430 square feet of commercial real estate space.
The principals of Trion Properties are Max Sharkansky and Mitch Paskover, two real estate professionals with over 30 years of combined experience in finance, acquisitions, management and redevelopment. Additional information is available at https://trionproperties.com/.