7 April 2017
California
Reporter: Katherine Brown

Joint venture snaps up San Leandro apartments for $36.6 million


Trion Properties and DVO Real Estate have acquired Bel Brook and Hideaway apartments in San Leandro, California, for $36.6 million.

The joint venture purchased the 146-unit residential property, located at at 77-85 Estabrook Street in East Bay, from the John Sullins family.

Currently 94 percent occupied, the property is within walking distance to a Bay Area Rapid Transit station and a mile away from the San Leandro Technology Campus, a 750,000-square foot mixed-use development, expected to bring 1,800 tech jobs to the area.

Technology giant Tesla currently resides in the area, while Uber is planning to move its corporate headquarters to Oakland.

According to the joint venture, plans to modernise the property, built in 1967, include interior and exterior renovations including to bring it up to market rents and increase net operating income.

This is Trion Properties’s fourth Bay Area acquisition in less than 15 months.

Max Sharkansky, managing partner at Trion Properties, said: “San Leandro is thriving and experiencing tremendous revitalisation, making it poised for long-term growth and investment potential. The enormous job growth throughout this region is driving demand for quality housing located in close proximity to transit options and major employers.”

He added: “Ultimately, this acquisition is well aligned with our strategy of targeting well-located assets with strong value-add potential, then investing in strategic renovations to enhance asset quality and drive long-term value.”

The purchase was financed by Continental Partners through NXT Capital, with John Leyvas Jr. and Brad Lehman of Newmark, Cornish & Carey representing the buyer and seller in the transaction.

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