Trion Properties, a vertically-integrated, multifamily real estate investment firm based in West Hollywood, California and Miami, Florida, announces the disposition of York Apartments a 52-unit multifamily property located in Tigard, Oregon.
York Apartments is a 52-unit garden-style apartment complex with three studio units, 48 two-bedroom, one-bath units, and one four-bedroom, two-bathroom unit. Trion sold York Apartments for a total consideration of $10.85 million–approximately $209k per unit. Despite being sold into a market with diminished buyer demand, the York asset was able to deliver significant value for Trion investors.
After a 48-month hold, the single asset had an IRR of 13.75 percent and an equity multiple of 1.48. The other assets in the portfolio—The Parker and Aster Parc Townhomes—sold in May and July of 2022, respectively, and provided a substantial boost to the three-part portfolio’s return, increasing the EM on the entire transaction portfolio to 2.11. Through April of 2023, Yardi reported less than $90 million in multifamily sales volume – this follows a 2022 with over $1.5 billion in sales for the year and a 2021 that set records with nearly $3 billion in turnover of assets.
“The sale of York is the third disposition in a group of garden-style apartment properties that we acquired in the Portland region in 2019,” comments Max Sharkansky, Managing Partner at Trion Properties. “When factored together, the sale of the three-asset portfolio generated an IRR of more than 29 percent.”
“The current market is very challenging for both buyers and sellers,” says Sharkansky. “We’ve been in business long enough to know you can’t hit a home run at every at-bat. But if you don’t strike out, you’ll stay in the game. The fact that we got this transaction completed with a solid return is a testament to our team’s experience and ability to acquire sound investments through the highs and lows of the market cycle without overextending our assets.”
“There have been suggestions that we could expect an acceleration of deals to come in the second half of 2023. The sale of York is part of that acceleration,” adds Sharansky. “We’ve seen a stabilization in asset prices and interest rate increases by the Fed have slowed. Both trends will bring buyers and sellers closer together and lead to more deals – as opposed to continued waiting for different economic conditions.”
HFO Investment Real Estate handled the transaction. Rob Marton, Partner, represented Trion in the sale, and Greg Frick, Co-founder and Partner, managed the process for the undisclosed purchaser of the property.