|Trion Properties has acquired Villa Morada Apartments, an 89-unit multifamily community in the Bay Area city of Hayward, for $25 mil, or $281k/unit. The property, located at 1180-1182 East St, was sold by Klingbeil Capital Management.
Built in 1969, Villa Morada Apartments is located in an opportunity zone in Downtown Hayward and is in brief walking distance to one of the city’s two BART stations, several shops, and restaurants. The property consists of two buildings featuring a variety of one- and two-bedroom units, as well as one three-bedroom unit. Both buildings have covered surface parking and a rooftop deck with unobstructed bay views. Additional amenities include a swimming pool, laundry facilities, and outdoor barbecue and picnic areas.
The acquisition brings the total number of assets Trion Properties owns in the Bay Area to four. Additionally, the firm recently sold Cinnamon Apartments, a 30-unit apartment property located 0.1 mile from Villa Morada Apartments, after a strategic rebranding and three-year hold.
“The city of Hayward perfectly aligns with our firm’s investment strategy of targeting markets with strong multifamily fundamentals and growth potential, which was proven when we brought Cinnamon Apartments full cycle earlier this year,” says Max Sharkansky, Managing Partner at Trion Properties. “Known as ‘the Heart of the Bay,’ Hayward is located in the geographical center of the technology capital of the world. The market benefits from close proximity to high-wage jobs in Oakland, San Francisco, Fremont, and Palo Alto, and the convergence of four major thoroughfares providing residents easy access throughout the region.”
In addition to the location, Trion was also drawn to the asset due to its attractive Spanish-style design and unique features, including oversized balconies with every unit and penthouse rooftop patios with panoramic bay views. Trion will implement its value-add improvement strategy with the property, including renovations to the interiors as units turn. These interior upgrades will include adding new washer/dryers, quartz countertops, vinyl plank flooring, cabinets, and smart locks, as well as new bathroom vanities, lights, and plumbing fixtures throughout.
The firm will also execute light exterior upgrades to improve hallways, lighting, branding, and signage. Exterior renovations also include new windows, paint, landscaping, decks, concrete parking, lighting, secured access, pool rehab, and roof replacement when needed. In addition, Trion will upgrade lighting and flooring in interior hallways, install Spanish tile in the entryways, renovate the leasing office, add pool furniture, and upgrade exterior amenities.
While select units at Villa Morada Apartments have been upgraded with laminate wood-look flooring, otherwise interiors have been mainly untouched since construction. With the upcoming improvements to the property and based on comparable properties in the area, Trion anticipates being able to quickly bring rates up to market, says Sharkansky.
Brett Betzler of Moran & Company represented both parties in the transaction.