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2/07/20
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Trion Properties has purchased Cedar Grove, a 61-unit multifamily community located in San Leandro, for $15 mil, or $246k/unit. Built in 1959, the property is located at 1200 Davis St, a few blocks east of I-880.
Cedar Grove is a two-story, gated apartment community that consists of mostly one-bedroom units. Interiors at the pet-friendly complex feature hardwood floors, crown molding, eat-in kitchens, breakfast nooks, and high-speed Internet access. Common amenities include a courtyard, outdoor grill, playground, a package service, and laundry facilities.
Trion is planning upgrades to the community’s interiors that will include the installation of quartz countertops, vinyl plank flooring, and new cabinets. Capital improvements are also planned for the asset’s exterior, including its façade, common areas, landscaping, branding, and signage. The company expects that its renovations will enable them to increase the property’s rental rates by over 21%.
With many East Bay submarkets benefiting from Silicon Valley spillover, the region is experiencing unprecedented population and employment expansion, according to Max Sharkansky, Managing Partner at Trion Properties. San Leandro apartments also offer a more attractive price point compared with neighboring submarkets, which will continue to drive potential residents to the area.
“San Leandro draws many residents from the ultra-hot Silicon Valley market and is a vibrant and innovative city on its own,” explains Sharkansky. “The market offers a convenient location, easy access to transportation, a strong business community, and a diverse housing base.”
“Despite its flourishing economy, San Leandro’s multifamily rents remain lower relative to those in San Francisco and the Silicon Valley, presenting an appealing alternative to many Bay Area tenants,” continues Sharkansky. “We continue to see this region as a positive long-term location. Since we purchased our first asset in San Leandro in 2016, we’ve experienced firsthand the exceptional growth and high occupancy rates, encouraging us to acquire additional assets in the market.”
The acquisition of Cedar Grove, which Trion is rebranding as Soji Apartments, brings the firm’s San Leandro multifamily portfolio to three properties. The property is located near downtown San Leandro, within walking distance of the San Leandro BART Station, giving residents access to millions of jobs around the Bay within a short commute.
John Leyvas of Newmark Knight Frank represented both Trion Properties and the seller in this transaction.
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